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Score: 0.75 of 1 pt 13 of 15 (8 complete) Problem 6-24 The following table summarizes the yields to maturity on several one-year, zero-coupon securities.

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Score: 0.75 of 1 pt 13 of 15 (8 complete) Problem 6-24 The following table summarizes the yields to maturity on several one-year, zero-coupon securities. Security Yield (%) Government of Canada 3.14 AAA corporate 3.25 BBB corporate 4.28 B corporate 4.96 a. What is the price (expressed as a percentage of the face value) of a one-year, zero-coupon corporate bond with an AAA rating? 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? a. What is the price (expressed as a percentage of the face value) of a one-year, zero-coupon corporate bond with an AAA rating? The price of this bond is %. (Round to three decimal places.) Enter your answer in the answer box and then click Check Answer parts remaining

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