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The following table summarizes the yields to maturity on several three-year bonds : Security Yield (%) Treasury 2.15 AAA corporate 3.25 BBB corporate 4.25 B

The following table summarizes the yields to maturity on several three-year bonds:

Security

Yield (%)

Treasury

2.15

AAA corporate

3.25

BBB corporate

4.25

B corporate

5.69

What is the credit default spread on B-rated corporate bonds?

1.0%
1.10%
2.15%
3.54%
5.69%

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