Build America Mutual (BAM), rated AA, will charge $50,000 to insure $10,000,000 of BBB rated sewer revenue bonds. The current BBB yield curve is

 

Build America Mutual ("BAM"), rated AA, will charge $50,000 to insure $10,000,000 of BBB rated sewer revenue bonds. The current BBB yield curve is pricing with a credit spread of 50bps while th AA curve is pricing at 15bps. Should the University use bond insurance if it is a two year note?