Question 12 Not yet answered Marked out of 2.55 Flag question Answer the following questions. The following table summarises the yields to maturity of four zero-coupon bonds with a 1-year maturity. Bond YTM T-Bill 3.11% AAA rated bond 3.25% BBB rated bond 4.25% B rated bond 4.92% i) What is the price of the zero-coupon bond with a rating of BBB? What is the credit spread for a AAA rated bond? iii) What is the relationship between credit spread and bond rating? O a. i) 92.012 ii) 0.14% iii) Credit spread increases as the rating of bond rating declines. O b. i) 95.012 ii) 0.20% iii) Credit spread decreases as the rating of bond rating declines. O c. i) 93.5 ii) 0.21% iii) Credit spread and bond rating are not related. O d. i) 95.012 ii) 0.20% iii) Credit spread increases as the rating of bond rating declines. O e. i) 94.012 ii) 0.09% iii) Credit spread decrease as the rating of bond rating declines.