Use the table for the question(s) below.
Consider the following yields to maturity on various one-year zero-coupon securities:

-The credit spread of the B 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:

-The credit spread of the B corporate bond is closest to?

Quizplus · Accepted Answer

The credit spread is the difference between the yield of the corporate bond and the yield of a risk-free bond (such as a Treasury bond) with the same maturity. The correct choice is 1.6%, which is the closest to the calculated credit spread.

Use the Table for the Question(s) Below