Use the Table for the Question(s) Below

question 23

Multiple Choice

Use the table for the question(s) below.
Consider the following yields to maturity on various one-year zero-coupon securities:

-The credit spread of the B corporate bond is closest to?

• A) 1.6%
• B) 1.0%
• C) 0.8%
• D) 1.4%

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Definitions:

Assurance of Future Profits

A form of guarantee or promise that endeavors to ensure or secure profit generation in future business activities.

Budgeting

The process of creating a plan to spend your money over a certain period, outlining projected income and expenses.

Continuous Budgeting

A budgeting approach that continuously updates the budget by adding a new period (month, quarter, etc.) as the current period is completed.

Annual Period

A 12-month time frame over which a business's financial performance is evaluated, which does not necessarily align with the calendar year.