Go to the St. Louis Federal Reserve FRED database, and find data on Moodys Aaa corporate bond yield (AAA) and Moodys Baa corporate bond yield (BAA). Download the data into a spreadsheet.

Calculatethespread(difference)betweenthemonthlyBaaandAaacorporatebondyieldsfor Aug. 2019. What does this difference represent?

Calculatethespreadagain,forthesamemonthbutoneyearprior,andcomparetheresultto your answer to part 1. What do your answers say about how the risk premium has changed over the past year?

Identify the month of highest and lowest spreads since the beginning of the year 2000. How do these spreads compare to Aug. 2019? Interpret the results.