1. 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%