question 10

The following table summarizes the yielis to maturity on sevoral one-yoar, zero-coupen securifies: a. What is the price (oxpressed as a porcentage 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 corporale bonds? c. What is the credit spread on B-raled 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-your, zero-coupon corporate bond with a AAA rating? The price of this bond Data table (Clek on the folowing icon D, in order to copy its contents into a spreadsheet) Important: The yields displayed are annually compounded yields. The following tablic summariznt the yintas to maturty on several one-year, zaro-ceupon securities: a. What is the poce (expressed as a percentage of the face value) of a one-year, zero-coupon corporite bond with a AAA rating? b. What is the credit spread on AAs-ated comporate bonds? e. What is the crode apread on B-rated corporate bonds? d. How does the credit spread change with the bond rating? Why? a. What is the price (exproseed as a percentape of the face value) of a one-year, zero-coupon corporate bend with a AAA rating? The price of this bond will be N. (Round to three decimal places.)