... meanrev ersion over the model in Table 4. The s pread bet w een the Berm udan swaption and the one-year option on the five-yea r swap decreases for out-of -the- money, i n -the- money, and at- the- money ... Options on Credit-Sensitive Bonds 19 The ta ble shows swaption prices for in -the- money (6.5%), at -the- money (7.5%), and out-of -the- money (8.5%) swaptions. Column 1 shows the strik e rate of the ... Options on Credit-Sensitive Bonds 21 The ta ble shows swaption prices for in -the- money (6.5%), at -the- money (7.5%), and out-of -the- money (8.5%) sw aptions. Column 1 shows the strike rate of the...