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Currently, 10-year annual corporate bonds with an AA rating have an average credit spread of 270 basis points. The yield to maturity of 10-year Treasury

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Currently, 10-year annual corporate bonds with an AA rating have an average credit spread of 270 basis points. The yield to maturity of 10-year Treasury annual coupon bonds is currently 1%. Estimate the yield to maturity of an AA rated, 10-year annual corporate bond. (Use the credit spread formula to compute the yield to maturity.) A. 2.3% B. 1.7% C. 0.7% D. 3.7% E. 1.36%

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