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Suppose That a Five-Year Treasury Bond Pays 2

Question 40

Multiple Choice

Suppose that a five-year Treasury bond pays 2.5 percent and a five-year corporate bond pays 8.5 percent, then what is the interest rate spread on this particular corporate bond?


A) 5 percent
B) 6 percent
C) 7.5 percent
D) 9.0 percent

Correct Answer:

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