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Consider the following yields to maturity on various one-year, zero-coupon securities: Security Yield (%) Treasury 5.4 AAA Corporate 5.6 BBB Corporate 6.4 B Corporate 7

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

Security Yield (%)
Treasury 5.4
AAA Corporate 5.6
BBB Corporate 6.4
B Corporate 7

The price (expressed as a percentage of the face value) of a one-year, zero-coupon corporate bond with a BBB rating is closest to ________.

A.75.19

B.112.78

C.131.58

D.93.99

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