Use the Table for the Question(s)below

question 93

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 BBB corporate bond is closest to:

• A)1.0%.
• B)5.6%.
• C)1.6%.
• D)0.8%.

---

Definitions:

Reversing Entry

An accounting entry made at the beginning of an accounting period that reverses or cancels out an adjusting entry made in the previous period.

Adjusting Entry

An entry made in the accounts to adjust revenues or expenses that have been accrued, deferred, or estimated.

Accrued Fees Earned

Revenues that have been earned by providing a service or product, but have not yet been received or invoiced to the client.

Reversing Entry

An accounting entry that is made at the beginning of an accounting period to reverse or cancel out adjusting entries made at the end of the previous accounting period.