What is the credit spread on one-year

Assignment Help Financial Management

Reference no: EM13870672

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?

1) 0.7%

2) 1.7%

3) 1.8%

4) 6.9%

Reference no: EM13870672

Questions Cloud

Current price under this new assumption of growth rate : A company currently pays a dividend of $2.0 per share. It is estimated that the company's dividend will grow at a rate of 20% per year for the next 4 years, and that the dividend will grow at a constant rate of 7% thereafter. What is your estimate of..

Discuss whether they make bonds more or less risky : Describe at least 5 bond provisions and discuss whether they make bonds more or less risky. Exercise: Consider two bonds, everything else the same except the provision. Would Bond A with the provision be more or less risky than Bond B without the pro..

Corporate bonds of various credit ratings : Luther Industries needs to raise $25 million to fund a new office complex. The company plans on issuing ten-year bonds with a face value of $1000 and a coupon rate of 7.0% (annual payments). The following table summarizes the YTM for similar ten-year..

What is the yield to maturity of five-year : What is the yield to maturity of a five-year, $5000 bond with a 4.5% coupon rate and semi annual coupons if this bond is currently trading for a price of $4876?

What is the credit spread on one-year : 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?

Bonds is trading at premium : Which of the following bonds is trading at a premium?

What is the market price of this preferred stock today : High Towers has an issue of preferred stock outstanding with a par value of $200. It pays an annual dividend equal to 10 percent of par value. If the required return on High Towers preferred stock is 5 percent, and if the company pays its next divide..

Manages endowments and trusts for large clients : Gordon Powles works for Creighton Capital Management and manages endowments and trusts for large clients. The fund invests most of its portfolio in S&P 500 stocks, keeping some cash to facilitate purchases and withdrawals. A colleague of Powles, Mari..

How would you calculate the spot rate of bond : How would you calculate the spot rate of bond?

User Account

All Pages