Question: . If 10-year U.S. Treasury notes are trading at a YTM of 2% and 10-year Verizon Corporate bonds are trading at a YTM of 4.875%,

. If 10-year U.S. Treasury notes are trading at a YTM of 2% and 10-year Verizon Corporate bonds are trading at a YTM of 4.875%, then the credit spread is about

a.There is no difference, both words describe the same phenomenon

b.The average between 3.00% and 5.875% or 4.375%

c.5.875%

d.288 basis points

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!