Question: A Treasury bond due in two years has a yield of 2.5%; a Treasury bond due in ten years has a yield of 6.6%. A

A Treasury bond due in two years has a yield of 2.5%; a Treasury bond due in ten years has a yield of 6.6%. A bond issued by IBM due in ten years has a yield of 8.8%; a bond issued by Apple due in two years has a yield of 4.2%. The default risk premiums on the bonds issued by Apple and IBM, respectively, are:

A.4.1% and 4.6% B.1.7% and 2.2% C.2.4% and 2.2% D.1.7% and 6.3%

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