Question
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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Intermediate Financial Management
Authors: Brigham, Daves
10th Edition
978-1439051764, 1111783659, 9780324594690, 1439051763, 9781111783655, 324594690, 978-1111021573
