TED Spread in the Global Credit Crisis. During financial crises, short$-$term interest rates will often change quickly $($typically up$)$ as indications that markets are under severe stress. The interest rates shown in the table, $,$ are for selected dates in September$-$October $2008.$ Different publications define the TED spread, the Treasury$-$Eurodollar spread, in different ways. One measure is the differential between the overnight LIBOR interest rate and the $3-$month U$.$S$.$ Treasury bill rate.

a$.$ Calculate the TED spread $-$ the difference between the two market rates shown in the table $-$ in September and October $2008.$

b$.$ On what date is the spread the narrowest? The widest?

c$.$ When the spread widens dramatically, presumably demonstrating some form of financial anxiety or crisis, which of the rates moves the most and why?

a$.$ Calculate the TED spread $$ the difference between the two market rates shown in the table $-$ in September and October $2008.($Round to two decimal places.$)$

$\backslash$table$[[$Date$,\backslash$table$[[$Overnight$],[$USD$],[$LIBOR$]],\backslash$table$[[3-$Month$],[$U$.$S$.],[$Treasury$]],\backslash$table$[[$TED$],[$Sppread$]]],[9/8/08,2\mathrm{.}15\%,1\mathrm{.}70\%,\%$