6 of 8 (0 completo) 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.) A. The credit spread increases as the bond rating falls because lower-rated bonds are riskier. OB. The credit spread decreases as the bond rating fails because lower-rated bonds are riskier. C. The credit spread increases as the bond rating rises because higher-rated bonds are riskier. OD. The credit spread decreases as the bond rating rises because higher rated bonds are rivier places.) Data Table Round to two de (Click on the following icon in order to copy its contents into a spreadsheet.) nd to two decir Why? (Select 1 Security Treasury AAA corporate BBB corporate B corporate Yield (%) 3.11 3.22 4.18 because lower- 4.45 because lower because higher because highe Print Done one-year, zero-coupon corporate bond with a AAA rating? Data Table - X wo de (Click on the following icon in order to copy its contents into a spreadsheet.) decin Select Security Treasury AAA corporate BBB corporate B corporate Yield (%) 3.11 3.22 4.18 4.95 lower-1 lower- higher e highe Print Done