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Assume that you are given the following two yields: the yield on a T - bill is equal to 4 % and the yield on

Assume that you are given the following two yields: the yield on a T-bill is equal to 4% and the yield on a corporate bond is 5.5%. What is the relative yield spread of the corporate bond relative to the T-bill (to the nearest second decimal place)?
Question 2Select one:
a.
The relative yield spread is equal to 37.50%.
b.
The relative yield spread is equal to 137.50%.
c.
The relative yield spread is equal to 27.27%.
d.
The relative yield spread is equal to 15.79%.
e.
None of the other answers given.

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