The price (expressed as a percentage of the face value) of a one-year, zero-coupon corporate bond with a BBB rating is closest to ________

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

Security Yield (%)
Treasury 5.5
AAA Corporate 5.7
BBB Corporate 6.5
B Corporate 7.1

A) 112.68
B) 131.46
C) 75.12
D) 93.90

Answer: D

Business

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Operating leverage predicts the effects that fixed costs have on changes in operating income when ________

A) production is discontinued B) there are no sales returns C) variable costs change D) sales volume changes

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In the analysis of emerging market sovereign bonds, why is geopolitical significance important?

What will be an ideal response?

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