The attached document from the NY Times provides the FINRA TRACE Corporate Bond Data at the bottom third of the page. The table provides coupon rates and yield to maturity for several outstanding investment grade corporate bonds. Please use the table as well as other sources (as needed) to respond to the following questions. Provide details of your computation when applicable.

1. What is the yield to maturity (YTM) on the 10-year US-Treasury?

2. Compute the following credit spreads and discuss their potential sources in term of risk quality and source of risks...

2.1 The 10-Year US-Treasuries YTM versus that of the Johnson & Johnson (JNJ4340193) Bond

2.2 The YTM of the Johnson & Johnson (JNJ4340193) Bond versus that of Abbott Labs (ABT4427939)

2.3 The YTM of the Abbott Labs (ABT442793) Bond versus that of Petroleos Mexicanos (PEMX434250

Treasury Bills, Notes and Bonds

Most recent issues

Maturrty	% yield	Change
3-month	0.98%	0.0001
6-month	1.06%	-0.0001
2-year	1.29%	-0.0001
5-year	1,72%	+0.0014
10-year	2.16%	0.0001
30-year	2.81%	--0.002

At 5:05 PM ET

Data delayed at least 15 minutes

Financial Tools

Analysis Tools

MARKETS OVERVIEW

U.S. MARKETS

WORLD MARKETS

CURRENCIES

COMMODITIES

BONDS

CONSUMER RATES

Screener Portfolio Alerts

[l>

FINRA TRACE Corporate Bonds

YIELD 52-WEEK TOTAL RETURN

Market Summary

At Close 06/02/2017: The price on the benchmark 10-year bond closed out

the week at NaN/32, yielding2.16%

while the 2-year note finished at

NaN/32, yielding 1.29%. The 6-month and 3-month T-bill's discount rates

closed at 0.00% and 0.00%,

respectively.

Treasury Bills, Notes and Bonds

Most recent issues

Maturrty	% yield	Change
3-month	0.98%	0.0001
6-month	1.06%	-0.0001
2-year	1.29%	-0.0001
5-year	1,72%	+0.0014
10-year	2.16%	0.0001
30-year	2.81%	--0.002

At 5:05 PM ET

Data delayed at least 15 minutes

Financial Tools

Analysis Tools

MARKETS OVERVIEW

U.S. MARKETS

WORLD MARKETS

CURRENCIES

COMMODITIES

BONDS

CONSUMER RATES

Screener Portfolio Alerts

[l>

FINRA TRACE Corporate Bonds

YIELD 52-WEEK TOTAL RETURN

Market Summary

At Close 06/02/2017: The price on the benchmark 10-year bond closed out

the week at NaN/32, yielding2.16%

while the 2-year note finished at

NaN/32, yielding 1.29%. The 6-month and 3-month T-bill's discount rates

closed at 0.00% and 0.00%,

respectively.

Treasury Bills, Notes and Bonds

Most recent issues

Maturrty	% yield	Change
3-month	0.98%	0.0001
6-month	1.06%	-0.0001
2-year	1.29%	-0.0001
5-year	1,72%	+0.0014
10-year	2.16%	0.0001
30-year	2.81%	--0.002

At 5:05 PM ET

Data delayed at least 15 minutes

Financial Tools

Analysis Tools

MARKETS OVERVIEW

U.S. MARKETS

WORLD MARKETS

CURRENCIES

COMMODITIES

BONDS

CONSUMER RATES

Screener Portfolio Alerts

[l>

FINRA TRACE Corporate Bonds

YIELD 52-WEEK TOTAL RETURN

Market Summary

At Close 06/02/2017: The price on the benchmark 10-year bond closed out

the week at NaN/32, yielding2.16%

while the 2-year note finished at

NaN/32, yielding 1.29%. The 6-month and 3-month T-bill's discount rates

closed at 0.00% and 0.00%,

respectively.

Treasury Bills, Notes and Bonds

Most recent issues

Maturrty	% yield	Change
3-month	0.98%	0.0001
6-month	1.06%	-0.0001
2-year	1.29%	-0.0001
5-year	1,72%	+0.0014
10-year	2.16%	0.0001
30-year	2.81%	--0.002

At 5:05 PM ET

Data delayed at least 15 minutes

Financial Tools

Analysis Tools

MARKETS OVERVIEW

U.S. MARKETS

WORLD MARKETS

CURRENCIES

COMMODITIES

BONDS

CONSUMER RATES

Screener Portfolio Alerts

[l>

FINRA TRACE Corporate Bonds

YIELD 52-WEEK TOTAL RETURN

Market Summary

At Close 06/02/2017: The price on the benchmark 10-year bond closed out

the week at NaN/32, yielding2.16%

while the 2-year note finished at

NaN/32, yielding 1.29%. The 6-month and 3-month T-bill's discount rates

closed at 0.00% and 0.00%,

respectively.

INVESTMENT GRADE	HIGH YIELD	CONVERTIBLES		03/17/201
					Credit rating	Price
Issuer name (symbol)			Coupon %		Maturity Moody's S.&P. Fitch	Last Change	Yield%
Johnson & Johnson JNJ4340193			2.45%		Mar '12026 Aaa AAA AAA	95.418 +0.468	3.04%
Verizon Communications Inc VZ4466757			4.13%		Mar '12027 NR BBB+ A-	100.856 +0.27	4.02%
Sumitomo Mrtsui Finl Group Inc SMFG4381271			2.06%		Jul '12021 A1 A- n.a.	96.905 --0.105	2.83%
Total Cap Cda Ltd TOT3954266			1.45%		Jan '12018 Aa3 A+ AA-	100.062 +0.303	1.37%
Bnp Paribas / Bnp Paribas Us Medium Term BNPQF3900102			2.38%		Sep '12017 A1 A A+	100.334 +0.051	1.67%
Verizon Communications Inc VZ4466641			5.50%		Mar '12047 NR BBB+ A-	103.955 +1.03	5.24%
Petroleos Mexicanos PEMX4342501			4.50%		Jan '12026 Baa3 BBB+ BBB+	96.306 +2.31	5.02%
Abbott Labs ABT4427939			3.75%		Nov '12026 Baa3 BBB BBB	99.12 +0.194	3.86%
Altria Group Inc MO.HC			9.70%		Nov '12018 A3 A- BBB+	112.542 +0.083	n.a.
Verizon Comm unications Inc VZ4466640			5.25%		Mar '12037 NR BBB+ A-	102.51 +0.493	5.05%