Question: Chapter 6 1. Following are U.S. Treasury benchmarks available on December 31, 2007: US/T 3.125 11/30/2009 3.133 US/T 3.375 11/30/2012 3.507 US/T 4.25 11/15/2017

Chapter 6 1. Following are U.S. Treasury benchmarks available on December 31, 2007: US/T 3.125 11/30/2009 3.133 US/T 3.375 11/30/2012 3.507 US/T 4.25 11/15/2017 US/T 4.75 02/15/2037 4.096 4.518 On the same day, the following trades were executed: Issuer Time Warner Cable Inc. McCormick & Co. Inc. Goldman Sachs Group Inc. Based on the above, complete the following table: Issue Yield (%) TWC 6.55 05/01/2037 MKC 5.75 12/15/2017 GS 5.45 11/01/2012 6.373 5.685 4.773 Issue Yield Treasury (%) Benchmark Benchmark Spread (bps) Relative Yield Spread TWC 6.55 05/01/2037 MKC 5.75 12/15/2017 6.373 5.685 GS 5.45 11/01/2012 4.773

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