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Use the table for the question(s) below. Consider the following yields to maturity on various oneyear zerocoupon securities: Security Yield (%) Treasury 4.6 AAA corporate

Use the table for the question(s) below.

Consider the following yields to maturity on various oneyear zerocoupon securities:

Security

Yield (%)

Treasury

4.6

AAA corporate

4.8

BBB corporate

5.6

B Corporate

6.2

The credit spread of the B corporate bond is closest to:

A.

1.0%

B.

0.8%

C.

1.6%

D.

1.4%

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