The Peru-issued USD Bond has a maturity date of 1/23/2031 and offers a coupon of 2.7830%. The payment of the coupon takes place 2.0 times per year. At the current price of 108.279 USD this equals a annual yield of 2.00%. If a US government issued bond of the same maturity has a yield of 1.05%, what is the default spread? (Hint: you need to use the yield not the coupon.)

Group of answer choices

A) 1.050

B) 0.950

C) 2.000

D) 2.783