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4 01 2017 complete) The following table summarizes yields to maturity on several 1-year, zero-coupon securities Security Yield Treasury 3.170% AAA Corporate 4.076% BBB Corporate

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4 01 2017 complete) The following table summarizes yields to maturity on several 1-year, zero-coupon securities Security Yield Treasury 3.170% AAA Corporate 4.076% BBB Corporate 4.731% B Corporate 5.616% 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? Note: Assume annual compounding. 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, expressed as a percentage of the face value is (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 three decimal places) c. What is the credit spread on B-rated corporate bonds? Burto rato handle the Harlmalarse Click to select your answers) E O Type here to search

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