4. Yield Spreads (risk premium). 1) What is "flight to quality? (3 points) 2) Referring to the following figure from Roche Holdings AG case, what had caused the yield spreads widen during the crisis? (5 points) 10.00 9.00 B.00 7.00 6.00 Yield 3.00 4.00 3.00 Feb 09 2.00 Feb-06 Aug-06 Feb-07 Aug-07 Feb-00 Aug-08 Mergent Corporate Bond Yield Average - Baa Rating Mergent Corporate Bond Yield Average.Aa Rating U.S. Treasures 30-Year Yield Dela Dasam Me Bordo 3) Among the three types of nd yields, which one has the highest yield? Why? (2 points)