Question
Assume the following yields for different bonds issued by a corporation: One-year bond: 5.50% Two-year bond: 6.00% Three-year bond: 7.00% If an on-the-run 3-year U.S.
Assume the following yields for different bonds issued by a corporation:
One-year bond: 5.50%
Two-year bond: 6.00%
Three-year bond: 7.00%
If an on-the-run 3-year U.S. Treasury is yielding 5 percent, then what is the relative yield spread on the 3-year corporate issue?
| A. | 1.167 | |
| B. | 16.67% | |
| C. | 14.28% | |
| D. | 100 basis points. |
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Fundamental Accounting Principles Volume I
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
16th Canadian edition
978-1260305821
