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What is the ytm on the treasury bonds

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A firm issues bonds with a coupon rate of 6% paid annually, having a credit rating of BBB, a par value of 1000, and maturity of 7 years. BBB rated bonds are trading at a spread of 3% over YTM on similar maturity treasury notes. New treasury notes of similar maturity are being issued at par at a coupon rate of 7%.

What is the YTM on the treasury bonds? Why?

What is the IRR of buying the bond today and selling the bond after 3 years?

Reference no: EM133060619

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