The price on a Treasury bond is 104.3625, with a yield to maturity of 3.45%. The price on a comparable maturity corporate bond is 103.75, 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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