Use the Information for the Question(s)below

question 35

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)6.9%
• B)0.7%
• C)1.7%
• D)1.8%

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Definitions:

Earnings Per Share

A financial metric that measures the profitability of a company on a per-share basis, calculated by dividing the company's net income by its total number of outstanding shares.

Return On Total Assets

A financial ratio that measures a company's profitability relative to its total assets.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period.

Days' Sales In Inventory

A financial metric indicating the average time in days that a company takes to turn its inventory into sales.