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A n investment publication states the yield on the long-term U.S. government bond is 1.0 6 0% . The publication also states the yields on

An investment publication states the yield on the long-term U.S. government bond is 1.060%. The publication also states the yields on several long-term securities which are listed in the table. In the following table, state the yield spread in basis points of the long-term securities relative to the long-term U.S. government bond. Also, list the characteristics that explain the yield spread and indicate whether the characteristic increases (+) or decreases (-) the yield of the long term securities relative to the U.S. government bond, all else equal you do not need to explain the characteristics.

Long-term bonds

Interest rates or yields

Yield spread

Characteristics explaining the differences

Municipal bonds double-A-rated (AA) bonds

0.852%

U.S. corporate double-A-rated (AA) bonds

1.430%

U.S. Corporate triple-B-rated (Baa) bonds

2.050%

High yield triple-C-rated (CCC)

8.370%

Argentinian government bonds

56.810%

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