Grummon Corporation has issued zero-coupon corporate bonds with a five-year maturity (assume $100 face value bond). Investors believe there is a 20% chance that Grummon will default on these bonds. Grummon does default, investors expect to receive only 75 cents per dollar they are owed. If investors require a 6% expected return on their investment in these bonds, what will be the price and yield to maturity on these bondo? Note: Assume annual compounding What will be the price of these bonds? The price of these bonds is $(Round to the nearest cent) Que The following table summarizes yields to maturity on several 1-year, zero-coupon securities: Security Yield Treasury 3.060% AAA Corporate 3.953% 888 Corporate 4.636% B Corporate 5.534% 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 1% (Round to three decimal places)