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%.

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Definitions:

Principal's Business

The main activities and operations undertaken by a business or organization to fulfill its objectives and generate revenue.

Interest

The cost of borrowing money, typically expressed as an annual percentage rate, or the income earned from lending money.

Agency Law

The legal principles governing the relationship between an agent, who acts for another person (the principal), and the rights and obligations that arise from this relationship.

Business Law

A branch of law that deals with the rights, relations, and conduct of persons and businesses engaged in commerce, merchandising, trade, and sales.