Question: 8. AC/DC Electric's bond is rated BB+ yields 5%. A comparable AA rated corporate bond trades at 48 yield. Treasury bond of comparable maturity trades

8. AC/DC Electric's bond is rated BB+ yields 5%. A comparable

8. AC/DC Electric's bond is rated BB+ yields 5%. A comparable AA rated corporate bond trades at 48 yield. Treasury bond of comparable maturity trades at 3.258. What is the spread of the BB+ and AA bonds? Which bond has the higher default risk

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