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Quiz: Chapter 6 Quiz Time Remalning: 00:51:25 Submit Quiz This Quiz: 12 pts possible This Question: 1 pt 49 of 12 (8 completo) The following
Quiz: Chapter 6 Quiz Time Remalning: 00:51:25 Submit Quiz This Quiz: 12 pts possible This Question: 1 pt 49 of 12 (8 completo) The following table summarizes the ylelds to maturity on several one-year, zero-coupon securitles: Security Treasury AAA corporate BBB corporate B corporate Yield (%) 3.08 3.16 4.21 4.90 a. What is the price (expressed as a percentage 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 corporate bonds? c. What is the credit spread on B-rated oorparate 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-year, zero-coupon corporate bond with a AAA rating? The price of this bond be %.(Round to three decimal places.) b. What is the credit spread on AAA-rated corporate bonds? The credit spread on AAA-rated corporate bonds is 1 1%. (Round to two decimal places.) c. What is the credit spread on B-rated corporate bonds? The credit spread on B-rated corporate bonds is %. (Round to two decimal places.) d. How does the credit spread change with the bond rating? Why? (Select the best choice below.) Click to select your answer(s). Quiz: Chapter 6 Quiz Time Remalning: 00:51:25 Submit Quiz This Quiz: 12 pts possible This Question: 1 pt 49 of 12 (8 completo) The following table summarizes the ylelds to maturity on several one-year, zero-coupon securitles: Security Treasury AAA corporate BBB corporate B corporate Yield (%) 3.08 3.16 4.21 4.90 a. What is the price (expressed as a percentage 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 corporate bonds? c. What is the credit spread on B-rated oorparate 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-year, zero-coupon corporate bond with a AAA rating? The price of this bond be %.(Round to three decimal places.) b. What is the credit spread on AAA-rated corporate bonds? The credit spread on AAA-rated corporate bonds is 1 1%. (Round to two decimal places.) c. What is the credit spread on B-rated corporate bonds? The credit spread on B-rated corporate bonds is %. (Round to two decimal places.) d. How does the credit spread change with the bond rating? Why? (Select the best choice below.) Click to select your answer(s)
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