Question
The yield on 10-year B corporate bond, 1-year T-note, 10-year T-bond, and 10-year municipal bond are 11%, 2%, 6%, and 5% respectively, what is the
The yield on 10-year B corporate bond, 1-year T-note, 10-year T-bond, and 10-year municipal bond are 11%, 2%, 6%, and 5% respectively, what is the bond spread (credit risk premium)?
A. 9%
B. 6%
C. 5%
D. Dont know.
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Financial Markets And Institutions
Authors: Anthony Saunders, Marcia Cornett
7th Edition
1259919714, 978-1259919718
