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Assume you are looking at the following bonds for purchase: Bond A: 5 year US Treasury Note @ 3.25% YTM Bond B: 10 year US
Assume you are looking at the following bonds for purchase:
Bond A: 5 year US Treasury Note @ 3.25% YTM
Bond B: 10 year US Treasury Note @ 3.50% YTM
Bond C: 5 year BBB rated Non-Callable Corporate Bond @ 4.85% YTM
Bond D: 10 year AA rated Non-Callable Corporate Bond @ 4.35% YTM
Bond E: 10 year Agency Callable in 5 years @ 4.40% YTC | 4.75% YTM
What is the Spread to Treasury of the BBB rated Non-Callable Corporate Bond (Bond C)? And hoe you calculate it
a) 160 bps
b) 10 bps
c) 135 bps
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