The following table summarizes the yields to maturity on several one$-$year, zero$-$coupon securities$.$

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.$)$

b$.$ What is the credit spread on AAA$-$rated corporate bonds?

The credit spread on AAA$-$rated corporate bonds is

$\%.($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.$)$

A$.$ The credit spread decreases as the bond rating rises because higher$-$rated bonds are riskier.

B$.$ The credit spread decreases as the bond rating falls because lower$-$rated bonds are riskier.

C$.$ The credit spread increases as the bond rating rises because higher$-$rated bonds are riskier.

D$.$ The credit spread increases as the bond rating falls because lower$-$rated bonds are riskier.