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 7%. (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 1%. (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.) O A. The credit spread decreases as the bond rating falls because lower-rated bonds are riskier. OB. The credit spread decreases as the bond rating rises because higher-rated bonds are riskier. O 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. Security Treasury AAA corporate BBB corporate B corporate Yield (%) 3.14 3.20 4.23 4.97