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A 10-year corporate bond is trading at a 175-basis point spread to a U.S. Treasury bond with a comparable maturity. The Treasury bond has a

A 10-year corporate bond is trading at a 175-basis point spread to a U.S. Treasury bond with a comparable maturity. The Treasury bond has a 1.25% semiannual coupon and is priced at par. A weak employment report sends the price on the U.S. Treasury security to $1,014.17, while the price on the corporate bond is unchanged. What is the new spread?

A.) 175 basis points

B.) 190 basis points

C.) 180 basis points

D.) 195 basis points

E.) 205 basis points

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