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Ford Motor Company wants to issue a five-year annual coupon bond that has been rated BBB by S&P. The yield to maturity of five-year Treasury

Ford Motor Company wants to issue a five-year annual coupon bond that has been rated BBB by S&P. The yield to maturity of five-year Treasury annual coupon bonds is currently at 1%. If the price of these bonds is $950 and the annual coupon rate is 3%, estimate the bonds credit spread. (The par value of the bonds is $1,000.) a) 100bp b) 426bp c) 413bp d) 313bp 3) 200bp

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