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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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