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Given the information below, the required yield on a newly issued 7-year, BB-rated corporate bond is closest to 6-year, U.S. Treasury bond, YTM 1.31% 6-year,

Given the information below, the required yield on a newly issued 7-year, BB-rated corporate bond is closest to

6-year, U.S. Treasury bond, YTM 1.31%

6-year, BB-rated corporate bond, YTM 3.71%

8-year, U.S. Treasury bond, YTM 2.23%

8-year, BB-rated corporate bond, YTM 4.79%

7-year, U.S. Treasury bond, YTM 1.76%

A.

4.03%.

B.

4.13%.

C.

4.21%.

D.

4.24%.

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