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The 3-year zero-coupon bond issued by Firm X is currently trading at $816.30. T...
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The 3-year zero-coupon bond issued by Firm X is currently trading at $816.30. The bond has a face value of $1,000. The following table shows the annual yields to maturity (YTM) for zero-coupon bonds with different credit ratings:
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Based on the price of Firm X’s bond, its implied credit rating is:
0%
0%
0%
0%
100%