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Question 18 1 pts A Treasury bond with a 7.0% coupon and maturing in 18 years has a yield to maturity of 5.35%. A bond
Question 18 1 pts A Treasury bond with a 7.0% coupon and maturing in 18 years has a yield to maturity of 5.35%. A bond issued by a BBB rated company with a coupon of 7.5% and maturing in 18 years has a yield to maturity of 6.24% What is default risk spread for the BBB rated bond? Enter your answer below as a whole number in BASIS POINTS. Question 19 1 pts Billy Madison just bought a 7-year zero-coupon bond with a yield to maturity of 10% and a par value of $1,000. What would Billy's holding period rate of return be if he sells the bond in one year? Assume the yield to maturity on the bond has fallen to 8% at the time Billy sells. 13.8% 9.0% 22.8% 19.7% 14.2%
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