The price on a treasury bond is 104:21 with a yield to maturity of 3.45%.The price on a comparable maturity corporate bond is 103:11 with a yield to maturity of 4.59%.What is the approximate percentage value of the credit risk of the corporate bond?
A) 1.14%
B) 3.45%
C) 4.59%
D) 8.04%
Correct Answer:
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