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Consider the following yields to maturity on various one-year zero-coupon securities: Security Yield (%) Treasury 4.6 AAA Corporate 4.8 BBB Corporate 5.5 B Corporate 6.2

Consider the following yields to maturity on various one-year zero-coupon securities:

Security

Yield (%)

Treasury

4.6

AAA Corporate

4.8

BBB Corporate

5.5

B Corporate

6.2

The credit spread of the BBB corporate bond is closest to:

A.

0.9%

B.

1.8%

C.

0.45%

D.

1.2%

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