Question: Say we are trying to decide between purchasing a ten-year bond issued by Goldman Sachs or JP Morgan Chase. The yield-to-maturity on the Goldman Sachs

Say we are trying to decide between purchasing a ten-year bond issued by Goldman Sachs or JP Morgan Chase. The yield-to-maturity on the Goldman Sachs bond is 10.50% while the yield on the JP Morgan Chase bond is 5.25%. How can yield spreads help us understand why these yields are different?

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