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:

Based on the price of Firm X’s bond, its implied credit rating is:

[This case was adapted from CFA Institute, Ethics in Practice Casebook]

Lennox is an analyst and trader at a major global asset management firm. The firm's president and CEO is a highly respected figure in the investment industry, frequently appearing as a guest commentator on leading financial news programs. During these appearances, the CEO is typically filmed sitting in the firm's trading room, with traders’ workstations visible in the background. Lennox’s computer screen is often clearly displayed during these broadcasts.

Beyond her role as an analyst, Lennox is an outspoken advocate for an environmental organization that protests the use of synthetic chemicals in consumer products. During the CEO’s next television appearance—unnoticed by the show's producers—Lennox intentionally displays a provocative environmental protest image on her screen, ensuring it is visible to viewers. Following the broadcast, several clients of the firm, including executives from a major chemical manufacturing company, express their dissatisfaction and lodge formal complaints. Lennox’s actions are