Go to the Federal Reserve Boards website and get the latest rates on 10-year T-bond and Aaa- and Baa-rated corporate bonds using the following steps. Go to www.federalreserve.gov. Click on Data. Click on Selected Interest Rates: H.15. Click on the most recent date. This will bring the file onto your computer that contains the relevant data.

Questions

1. Calculate the percentage change in the 10-year T-bond and Aaa- and Baa-rated corporate bonds since June 2016.
2. Calculate the current spread of Aaa- and Baa-rated corporate bonds over the 10-year T-bond rate. How have these spreads changed over the last two years?