What is the maximum sensible one-year spot rate

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Corporate Bonds: (5 points) Prices for zero-coupon corporate bonds with face values of $1,000 and one year until maturity are summarized in the following table: Rating Price AAA AA A BBB BB $952.38 $950.57 $947.87 $940.73 $930.23 A. What is the promised yield-to-maturity on one-year zero-coupon AA-rated corporate bonds? B. A one-year zero-coupon corporate bond has a yield-to-maturity of 7.7%. Is it a junk bond? C. A friend tells you that the one-year spot rate for risk-free Treasury securities is 5.3%. Do you believe him? Why or why not? What is the maximum sensible one-year spot rate?

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