What is the price of the treasury bond

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a BBB-rated Corporate bond has a yield to maturity of 5.0%. A U.S. Treasury security has a yield of 3.0%. These yields are quoted as APRs with semiannual compounding. Both bonds pay semi-annual coupons at a rate of 3.2% 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 three decimal places)

B. What is the price (expressed as a percentage of the face value) of the BBB-rated corporate bond? (Round to three decimal places)

C. What is the credit spread on the BBB bonds? (Round to two decimal places)

Reference no: EM131044072

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