Question: Security Term (years) Yield (%) Treasury 20 5.5% AAA Corporate 20 7.0% BBB Corporate 20 8.0% B Corporate 20 9.6% The credit spread on BBB-rated

Security

Term (years)

Yield (%)

Treasury

20

5.5%

AAA Corporate

20

7.0%

BBB Corporate

20

8.0%

B Corporate

20

9.6%

The credit spread on BBB-rated corporate bonds is:

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