In 1993, Bankers Trust (BT) agreed to lend money to Procter and Gamble (P&G) in return for a spread where the spread is described by equation (1). In other words, the spread represents the interest payment by P&G to BT. 5 yr USTyield 5.78% 98.5 30 yr UST price Spread max0, Where 5 yr UST Yield is the yield-to-maturity of a 5- year U.S Treasury bond; 30 yr UST price is the price of a 30-year U.S. Treasury bond. 100 The CEO of P&G said that the spread does NOT depend on volatility of interest rates. Do you agree? Justify your