Consider the following yields to maturity on various one-year, zero-coupon securities: Security Yield (%) Treasury 4.4 4.6 5.3 6 AAA Corporate BBB Corporate B Corporate The credit spread of the BBB corporate bond is closest to A. 0.9% B. 0.45% O C. 1.8% OD. 1.2%

Consider the following yields to maturity on various one-year, zero-coupon securities: Security Yield (%) Treasury 4.4 4.6 5.3 6 AAA Corporate BBB Corporate B Corporate The credit spread of the BBB corporate bond is closest to A. 0.9% B. 0.45% O C. 1.8% OD. 1.2%

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

Consider the following yields to maturity on various one-year, zero-coupon securities:
Security
Yield (%)
Treasury
4.4
4.6
5.3
6
AAA Corporate
BBB Corporate
B Corporate
The credit spread of the BBB corporate bond is closest to
A. 0.9%
B. 0.45%
C. 1.8%
OD. 1.2%

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