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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
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.) X i 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 3.14 4.13 4.85 Print Done Enter your answer in the answer box and then click Check Answer. Suppose a five-year, $1,000 bond with annual coupons has a price of $903.72 and a yield to maturity of 5.9%. What is the bond's coupon rate? The bond's coupon rate is %. (Round to three decimal places.)
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