Question: Corporate Bond Yield Rate Spread = DRP + LP U.S. Treasury 0.83 % AAA corporate 0.93 0.10 % AA corporate 1.31 0.48 A corporate 1.73
| Corporate Bond Yield | ||||
| Rate | Spread = DRP + LP | |||
| U.S. Treasury | 0.83 | % | ||
| AAA corporate | 0.93 | 0.10 | % | |
| AA corporate | 1.31 | 0.48 | ||
| A corporate | 1.73 | 0.90 |
Based on the information about the corporate bond provided, calculate yields and then construct a new yield curve graph that shows both the Treasury and the corporate bonds. Round your answers to two decimal places.
| Years | Treasury yield | A-corporate yield | ||
| 1 | 5.42% | fill in the blank % | ||
| 2 | 5.47% | fill in the blank % | ||
| 3 | 5.66% | fill in the blank % | ||
| 4 | 5.73% | fill in the blank % | ||
| 5 | 5.65% | fill in the blank % | ||
| 10 | 5.77% | fill in the blank % | ||
| 20 | 6.38% | fill in the blank % | ||
| 30 | 5.96 | fill in the blank % |
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