Question: Security: Treasury AAA Corporate BBB Corporate B Corporate Yield(%): 5.2 5.4 6.8 9.5 The above table shows the yields to maturity on a number of
Security:
Treasury
AAA Corporate
BBB Corporate
B Corporate
Yield(%):
5.2
5.4
6.8
9.5
The above table shows the yields to maturity on a number of three-year, zero-coupon securities. What is the credit spread on a three-year, zero-coupon corporate bond with a Brating?
A.
6%
B.
5.2%
C.
4.3%
D.
3.4%
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