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A BBB-rated corporate bond has a yield to maturity of 11.8%. An Australian treasury security has a yield to maturity of 9.9%. These yields are quoted as APRs with semi-annual compounding. Both bonds pay semi-annual coupons at a rate of 10.6% 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? a. The price of the treasury bond as a percentage of face value is %. (Enter your response as a percent rounded to three decimal places.) b. The pnce o he BBB rated corporate bond as a percentage o ace value is % Enter your response as a percent rounded to ree ea a piace C. The credit spread on the BBB bonds is | %. (Enter your response as a percent rounded to two decimal places.)

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