Bbb-rated corporate? bond

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A? BBB-rated corporate bond has a yield to maturity of 11.7%. A U.S. treasury security has a yield to maturity of 10.3%. These yields are quoted as APRs with semiannual compounding. Both bonds pay? semi-annual coupons at a rate of 11.2% 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?

Reference no: EM132154525

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