Use the table for the question(s) below.
Consider the following yields to maturity on various one-year zero-coupon securities:
$\begin{array} { l c }
\hline \text { Security } & \text { Yield (\%) } \
\hline \text { Treasury } & 4.6 \
\hline \text { AAA corporate } & 4.8 \
\hline \text { BBB corporate } & 5.6 \
\hline \text { B Corporate } & 6.2 \
\hline
\end{array}$
-The credit spread of the BBB corporate bond is closest to?

Question

Use the table for the question(s) below.
Consider the following yields to maturity on various one-year zero-coupon securities:
$\begin{array} { l c } 
\hline \text { Security } & \text { Yield (\%) } \
\hline \text { Treasury } & 4.6 \
\hline \text { AAA corporate } & 4.8 \
\hline \text { BBB corporate } & 5.6 \
\hline \text { B Corporate } & 6.2 \
\hline
\end{array}$
-The credit spread of the BBB corporate bond is closest to?

Quizplus · Accepted Answer

The credit spread is the difference between the yield of the BBB corporate bond and the Treasury bond, which is 5.6% - 4.6% = 1.0%.

Use the Table for the Question(s) Below -The Credit Spread of the BBB Corporate Bond Is Closest