Question: please answer A BC D as soon as possible The following table summarizes yields to maturity on several 1-year, zero-coupon securities: Security Treasury Bill AAA

please answer A BC D as soon as possible The following

please answer A BC D as soon as possible

The following table summarizes yields to maturity on several 1-year, zero-coupon securities: Security Treasury Bill AAA Corporate BBB Corporate B Corporate Yield 3.11% 3.40% 4.35% 4.90% a. What is the price (expressed as a percentage of the face value) of a 1-year, zero-coupon corporate bond with a AAA-rating and a face value of $1,000? 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 1-year, zero-coupon corporate bond with a AAA-rating and a face value of $1,000? The price is $ (Round to the nearest cent.) 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.) Click to select your answer(s)

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