The average yield on AA+ 30-year T-bond is 6.35%. The average yield on 30-year AA corporate bonds is 12.15%. What is the yield spread between AA+ T-bonds and AA corporate bonds?

A. 5.80%

B. 6.35%

C. 12.15%

D. 3.50%

An investor purchased a 20-year 2.35% Treasury note at the issue price of 100 on June 1, 2021. As the government response to COVID-19 pandemic continued, investors became worried about the U.S. governments ability to service its growing debt burden and sold large quantities of Treasury securities. The decreased demand pushed Treasury prices down. On June 1, 2022, exactly one year after buying the T-note, the investor sold it for 78 after receiving two-coupon payments. What was the yield to maturity when the investor purchased the note? What was the investors realized return, stated as an APR, when she sold the note?

A. The yield to maturity at purchase is 2.35%, while the rate of return at sale is 20.86%.

B. The yield to maturity at purchase is 2.35%, while the rate of return at sale is 14.44%.

C. The yield to maturity at purchase is 2.3%, while the rate of return at sale is 19.98%.

D. The yield to maturity at purchase is 5.70%, while the rate of return at sale is 20.86%.