If a 10-year Treasury bond pays 1.5% and a 10-year corporate bond pays 6.0%, what is the interest rate spread on this particular corporate bond?

Name: If a 10-year Treasury bond pays 1.5% and a 10-year corporate bond pays 6.0%, what is the interest rate spread on this particular corporate bond?
Brand: Quizplus
Rating: 4.8 (56 reviews)

Question

Quizplus · Accepted Answer

The interest rate spread is the difference between the two interest rates, which is 6.0% - 1.5% = 4.5%. Therefore, the answer is B.

If a 10-Year Treasury Bond Pays 1