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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% |
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U.S. corporate double-A-rated (AA) bonds | 1.430% |
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U.S. Corporate triple-B-rated (Baa) bonds | 2.050% |
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High yield triple-C-rated (CCC) | 8.370% |
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Argentinian government bonds | 56.810% |
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