Question
The yield on a company's five-year bonds is 5%. The five year swap rate is 4.5% and the five-year Treasury rate is 4%.What would be
The yield on a company's five-year bonds is 5%. The five year swap rate is 4.5% and the five-year Treasury rate is 4%.What would be closest to your best estimate of the five-year CDS spread.
A.150 basis points
B.100 basis points
C.50 basis points
D.None of the previous is correct.
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Options Futures and Other Derivatives
Authors: John C. Hull
10th edition
013447208X, 978-0134472089
