Question 18.2: 2. Suppose the yield on a 10-year corporate bond is 6.2% and...

The Basics of Finance: An Introduction to Financial Markets, Business Finance, and Portfolio Management [EXP-19651]

2. Suppose the yield on a 10-year corporate bond is 6.2% and the yield on

a similar-maturity Treasury security is 4.5%.

a. What is the yield spread for this corporate bond?

b. Why is there a yield spread between these two securities?

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