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Based on the information in the attached chart, what is the spread that must be paid over the treasury yield curve? I concluded it is
Based on the information in the attached chart, what is the spread that must be paid over the treasury yield curve? I concluded it is 1.318.
What are the yields that these bonds pay? What is the spread that Starbucks must pay over the treasury yield curve? Issuer Name Symbol Callable SubProduct Type Coupon Maturity STARBUCKS CORP STARBUCKS CORP STARBUCKS CORP STARBUCKS CORP STARBUCKS CORP STARBUCKS CORP SBUX4047665 SBUX4077396 SBUX4254476 SBUX4254475 SBUX4332834 SBUX4363106 Yes Yes Yes Corporate Bond Corporate Bond Corporate Bond Corporate Bond Corporate Bond Corporate Bond 3.850 2.000 2.700 4.300 2.100 2.450 10/01/2023 12/05/2018 06/15/2022 06/15/2045 02.04/2021 06/15/2026 Yes Yes Moody's Rating A2 A2 A2 A2 A2 A2 S&P Rating A A A A A A Last Sale Price 107.705 100.620 102.241 109.659 100.533 97.000 Last Sale Yield 2.451 1.515 2.200 3.734 1.940 2.833 A yield spread is the difference between yields on differing debt instruments of varying maturities, credit ratings and risk, calculated by deducting the yield of one instrument from another. In this case, the highest yield is 2.833 and the lowest yield is 1.515. 2.833 - 1.515 = 1.318 1.318 is the spread that Starbucks must pay over the treasury yield curveStep by Step Solution
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