If 10-year U.S. Treasury notes are trading at a YTM of 2% and 10-year Verizon Corporate bonds are trading at a YTM of 4.875%, then the credit spread is about

1. There is no difference, both words describe the same phenomenon
2. The average between 3.00% and 5.875% or 4.375%
3. 5.875%
4. 288 basis points

The following discount factors are observed:

Tenor in Years	Discount Factor
1	.9804
2	.9495
3	.9210
4	.8841

What is the approximate fixed rate on a four-year plain-vanilla interest rate swap? VIDEO

1. 1.525%
2. 2.75%
3. 3.10%
4. 2.15%