Use the Table for the Question(s)below

question 10

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)0.8%.
• C)1.0%.
• D)1.4%.

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Definitions:

Symmetrical

A shape or distribution that is mirrored and balanced on both sides of a central point.

Standard Normal Distribution

A type of normal distribution where the mean is 0 and the standard deviation is 1.

Mean

The arithmetic average of a set of numbers, calculated by adding up all the values and dividing by the count of numbers.

Variance

A statistical measure that determines the spread of numbers in a data set by calculating the mean of the squared differences from the mean.