Between 2003 in the end of 2006 the difference between long-term interest rates on corporate bonds, Baa and the 10 year US treasury notes has decreased to around 8 percent.

Question

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The difference between long-term interest rates on corporate bonds (Baa) and the 10-year US Treasury notes is measured by the spread, which typically reflects the risk premium for corporate bonds over risk-free government securities. A spread of around 8 percent would be unusually high for this period or generally in modern financial markets, as spreads are more commonly in the range of 1-3 percent for Baa-rated corporate bonds relative to 10-year Treasury notes.

Between 2003 in the End of 2006 the Difference Between