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The following table summarizes the yields to maturity on several one-year, zero-coupon securities: Yield (%) 0.9 Security Treasury AAA corporate BBB corporate 2.2 3.2 B
The following table summarizes the yields to maturity on several one-year, zero-coupon securities: Yield (%) 0.9 Security Treasury AAA corporate BBB corporate 2.2 3.2 B corporate 3.8 8) What is the price (expressed as a percentage of the face value) of a one-year, zero-coupon corporate bond with an AAA rating? a. What is the credit spread on AAA-rated corporate bonds? b. What is the credit spread on B-rated corporate bonds? c. How does the credit spread change with the bond rating? Why
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