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The following table presents the vield curve on December 31, 2018 and October 31 2019 for the Government of Canada and BBB corporate bonds. Maturities
The following table presents the vield curve on December 31, 2018 and October 31 2019 for the Government of Canada and BBB corporate bonds. Maturities Government of Canada BBB Corporate Bonds (Benchmark) Yield to Maturity (96) Yield to Maturity (%) Dec 31 2018 Oct 31 2019 As at Dec 31. 2018 As at Oct 31. 2019 1.644 1.657 2.562 2.165 6M 1.770 1.675 2.615 2.178 LYR 1.871 1.694 2.738 2.231 2YR 1.860 1.594 3.082 2.317 SYR 1.885 1.530 3.554 2.686 10YR 1.965 1.525 4.024 3.213 30YR 2.182 1.687 4.792 3.991 What was the benchmark spread (in basis points) for the 5-year BBB Corporate bonds on December 31, 2018? On October 31, 2019? None of the options are correct -166.9% -115.9% -166.9 bps. -115.6 bps 166.9%. 115.6% 166,9 bps. 115.6 bps What happened to the benchmark spread and what does it mean from a credit riske perspective? Benchmark spread increase and credit risk decrease Benchmark spread decrease and credit risk decrease Benchmark spread decrease and credit risk increase Benchmark spread increase and credit risk increase What happened to the shape of the Government of Canada yield curve between December 31, 2018 and October 31, 2019? Steepened No change Flattened Not enough information to
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