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The following table summarizes the yields to maturity on several one-year, zero-coupon securities: Security Yield (%) Treasury 3.11 AAA corporate 3.17 BBB corporate 4.18 B

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The following table summarizes the yields to maturity on several one-year, zero-coupon securities: Security Yield (%) Treasury 3.11 AAA corporate 3.17 BBB corporate 4.18 B corporate 4.87 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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