What is the price of the treasury bond

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A? BBB-rated corporate bond has a yield to maturity of 4.9 %. A U.S. Treasury security has a yield to maturity of 3.1 %. These yields are quoted as APRs with semiannual compounding. Both bonds pay semiannual coupons at an annual rate of 3.3 % and have five years to maturity. 

a. What is the price (expressed as a percentage of the face value) of the Treasury bond? (round to two decimal places)

b. What is the price (expressed as a percentage of the face value) of the BBB-rated corporate bond? (round to two decimal place)

c. What is the credit spread on the BBB bonds? (round to two decimal place)

Reference no: EM132006016

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