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.$)$

Important: The yields displayed are annually compounded yields.

$\backslash$table$[[$Security$,$Yield $(\%)],[$Treasury$,3\mathrm{.}12],[$AAA corporate,$3\mathrm{.}19],[$BBB corporate,$4\mathrm{.}26],[$B corporate,$4\mathrm{.}93]]$