URGENT DUE LESS THAN AN HOUR Consider the following yields to maturity on various...

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Finance

URGENT DUE LESS THAN AN HOUR

Consider the following yields to maturity on various one-year zero-coupon securities:

Security

Yield (%)

Treasury

3.8

AAA Corporate

4

BBB Corporate

4.8

B Corporate

5.4

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

A. 1.3%

B. 0.5%

C. 1%

D. 2%

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