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please highlight the answers ! A BBB-rated corporate bond has a yield to maturity of 11.4%. A U.S. treasury security has a yield to maturity
please highlight the answers !
A BBB-rated corporate bond has a yield to maturity of 11.4%. A U.S. treasury security has a yield to maturity of 9.5%. These yields are quoted as APRs with semiannual compounding. Both bonds pay semi-annual coupons at a rate of 10.3% and have five years to maturity. a. What is the price (expressed as a percentage of the face value) of the treasury bond? b. What is the price (expressed as a percentage of the face value) of the BBB-rated corporate bond? c. What is the credit spread on the BBB bonds? a. What is the price (expressed as a percentage of the face value) of the treasury bond? The price of the treasury bond as a percentage of face value is 1%. (Round to three decimal places.) b. What is the price (expressed as a percentage of the face value) of the BBB-rated corporate bond? The price of the BBB-rated corporate bond as a percentage of face value is %. (Round to three decimal places.) c. What is the credit spread on the BBB bonds? The credit spread on the BBB bonds is 1%. (Round to two decimal places.) Step by Step Solution
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