Use the Information for the Question(s)below

question 5

Multiple Choice

Use the information for the question(s) below.
-The above table shows the yields to maturity on a number of one-year,zero-coupon securities.What is the credit spread on a one-year,zero-coupon corporate bond with a B rating?

• A)0.7%
• B)1.7%
• C)1.8%
• D)6.9%

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Definitions:

Subsidence

The process by which the earth's surface sinks or lowers, often due to natural underground material movement or removal of groundwater.

Average Gradient

The average gradient refers to the rate of elevation change over a particular distance, often used in geographical and hydrological analysis to describe slopes.

Base Level

The lowest point to which erosion by running water can lower the landscape, ultimately the sea level or lake level where rivers end.

Base Level

The lowest point to which a river can erode its channel, often sea level for rivers that flow directly into the oceans, but can be a lake or resistant rock layer for other rivers.