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the following table summarizes yields to maturity on several 1-year, zero-coupon securities Security Yield Treasury 3.100% AAA Corporate 3.477% BBB Corporate 3915% B Corporate 4.741%

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the following table summarizes yields to maturity on several 1-year, zero-coupon securities Security Yield Treasury 3.100% AAA Corporate 3.477% BBB Corporate 3915% B Corporate 4.741% a. What is the price (expressed as a percentage of the face value) of a 1-year, zero-coupon corporate bond with a AAA rating and a face value of $1,000? 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? Note. Assume annual compounding

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