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Security: Treasury AAA Corporate BBB Corporate B Corporate Yield (%): 5.2 5.4 6.8 8.3 The above table shows the yields to maturity on a number
Security: | Treasury | AAA Corporate | BBB Corporate | B Corporate |
Yield (%): | 5.2 | 5.4 | 6.8 | 8.3 |
The above table shows the yields to maturity on a number of
four
-year,
zero-coupon securities. What is the credit spread on a
four
-year,
zero-coupon corporate bond with a B rating?
A.
2.5
%
B.
3.7
%
C.
3.1
%
D.
4.3
%
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