What is the price of the treasury bond

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A BBB-rated corporate bond has a yield to maturity of 11.6%. A U.S. treasury security has a yield to maturity of 9.8%. These yields are quoted as APRs with semiannual compounding. Both bonds pay semi-annual coupons at a rate of 10.2% 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: EM131959517

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