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The following table summarizes the yields to maturity on several​ one-year, zero-coupon​ securities: Security Yield ​(%)...

The following table summarizes the yields to maturity on several​ one-year, zero-coupon​ securities: Security Yield ​(%) Treasury 3.07 AAA corporate 3.19 BBB corporate 4.14 B corporate 4.85 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 nothing​%. ​(Round to three decimal​ places.)

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SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 10 months ago
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