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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

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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 a 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 a AAA rating? The price of this bond will be %. (Round to three decimal places.) Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) Security Treasury AAA corporate BBB corporate B corporate Yield (%) 3.06 3.12 4.15 4.87 Print Done A BBB-rated corporate bond has a yield to maturity of 6.6%. A U.S. Treasury security has a yield to maturity of 5.1%. These yields are quoted as APRs with semiannual compounding. Both bonds pay semi-annual coupons at a rate of 5.9% and have five years to maturity. a. What is the price (expressed as a percentage of the face value) of the Treasury bond? b. What is the price (expressed as a percentage of the face value) of the BBB-rated corporate bond? c. What is the credit spread on the BBB bonds

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