Data table a (Click on the following icon in order to copy its contents into a spreadsheet.) Important: The yields displ

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Data Table A Click On The Following Icon In Order To Copy Its Contents Into A Spreadsheet Important The Yields Displ 1 (10.79 KiB) Viewed 42 times

Data table a (Click on the following icon in order to copy its contents into a spreadsheet.) Important: The yields displayed are annually compounded yields. Security Yield (%) Treasury 3.14 AAA corporate 3.25 BBB corporate 4.27 B corporate 4.98 Print Done

The following table summarizes the yields to maturity on several one-year, zero-coupon securities: a. What is the price (expressed as a percentage of the face value) of a one-year, zero-coupon corporate bond with a AAA rating? b. What is the credit spread on AAA-rated corporate bonds? c. What is the credit spread on B-rated corporate bonds? d. How does the credit spread change with the bond rating? Why? a. What is the price (expressed as a percentage of the face value) of a one-year, zero-coupon corporate bond with a AAA rating? The price of this bond will be %. (Round to three decimal places.) b. What is the credit spread on AAA-rated corporate bonds? The credit spread on AAA-rated corporate bonds is %. (Round to two decimal places.) c. What is the credit spread on B-rated corporate bonds? The credit spread on B-rated corporate bonds is %. (Round to two decimal places.) d. How does the credit spread change with the bond rating? Why? (Select the best choice below.) O A. The credit spread decreases as the bond rating rises because higher-rated bonds are riskier. B. The credit spread decreases as the bond rating falls because lower-rated bonds are riskier. The araditenrandinoasa the hand entina folla hanna Irrated hands are rinkin