Question: In February 2 0 1 8 , Aaa bonds yielded 3 . 4 3 % , Baa bonds yielded 4 . 5 6 % ,

In February 2018, Aaa bonds yielded 3.43%, Baa bonds yielded 4.56%, and Treasuries with the same maturities yielded 2.91%.
What was the credit spread on Aaa bonds? =0.520
What was the spread on Baa bonds? =1.650
What do you think would be the difference in price (as a percent of face value) between a typical 9% Treasury bond and a similar Baa bond? Assume annual coupons. only need the answer to this one other 2 answers are next to the questions

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