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Teslas 10-year corporate bonds have a required yield of 7%. The required yield for a treasury security of the same maturity is 2%. a. What

Teslas 10-year corporate bonds have a required yield of 7%. The required yield for a treasury security of the same maturity is 2%.

a. What is the credit spread of Tesla?

b. During the COVID-19 pandemic, the credit spread of Tesla is widened to 7%. What does a widened credit spread mean for Teslas credit risk?

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