3 Suppose you're a bond analyst analyzing a 10yr bond issued by Apple. 10yr USTs are offering a yield of 3.50%. You believe that the risk of default for Apple is very low, and that Apple bonds are generally pretty liquid. You believe Apple bonds should offer a Credit Spread of 0.25%. What yield do you demand on 10yr Apple Bonds? 4 TRUE/ FALSE: Suppose Apple announces very poor earnings, sales of iPhone X are way lower than expectations, and fortunes for Apple seem to be taking a turn for the worse. Would we expect that Apple credit spreads would get higher (i.e. it costs Apple a higher interest rate to borrow money, than it would if Apple business was strong)