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PLEASE HELPPPP ASAP You are considering the purchase of a 5-year bond for your portfolio. One possibility is a treasury bond with a $1,000 face

PLEASE HELPPPP ASAP

You are considering the purchase of a 5-year bond for your portfolio. One possibility is a treasury bond with a $1,000 face value that pays semi-annual coupons, has a 3% annual coupon rate, and is currently trading at a price of $1,050. Another possibility is a corporate bond that has the same coupons, maturity, and face value, and is AAA-rated.

a. What is the treasury bond's Yield-to-Maturity (YTM), stated as a bond-equivalent yield?

b. If AAA-rated 5-year corporate bonds are yielding 3.5% (on a bond-equivalent basis), what is the price of the corporate bond?

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