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:

Demand Curve

A graph showing the relationship between the price of a good and the quantity of the good that consumers are willing and able to purchase at various prices.

Elasticity

A measure of how much the quantity demanded or supplied of a good responds to a change in one of its determinants, such as price.

Inferior Goods

Goods for which demand decreases as the income of the consumer increases, opposite to normal goods.

Normal Goods

Goods for which demand increases as the income of consumers increases, and vice versa, holding all other factors constant.