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The following tabin summarizes the yields to maturity on several one-year, zero-coupon securities m a. What in the price (expressed as a percentage of the

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The following tabin summarizes the yields to maturity on several one-year, zero-coupon securities m a. What in the price (expressed as a percentage of the face value) of a one-you, zaro-coupon corporate bond with a AAA rating? b. What is the credit spread on AAA-rated corporate bonds? e. What is the credit spread on B-rated corporale 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 wth a AAA rating? The price of this bond will be * (Round to three decimal places) b. What is the credit spread on AAA-rated corporate bonds? Data Table The credit spread on AAA-stad corporate bonde is 1%. Round to two decimal places c. What is the credit spread on B-rated corporato bords? Click on the following soon in order to copy its contents into a spreadsheet.) Security The credit tored on Druted corporate bonde la 1 Mount to two decimal places.) Yield (%) Treasury 3.00 d. How does the credit spread change with the band riding? Why? (Select the best choice below) AAA corporate BIO corporate 4.92 O The credit spre increases as the band rating fate because lower rohad bonds we riski corporate The credit read increases as the bond rating ses because higher rated bonds were G. The spread decreas the bond rating at lower rated bonds are for Print Done OD. The spread decreases as the bonding rue because ignored bonds are riser 321 4.12

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