Question: Figure 14.3 contains average yields to maturity for corporate bonds of differing maturities and default ratings. The yields are based on spreads to Treasury securities.

Figure 14.3 contains average yields to maturity for corporate bonds of differing maturities and default ratings. The yields are based on spreads to Treasury securities. Using the figure, what is the spread to Treasury for an A-rated corporate bond with a 10-year maturity? Bond spreads are typically stated in basis points. What is a basis point? What is the basis point spread for a BB-rated corporate bond with a 30-year maturity?
In Figure 14.3

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