Question: Security: Treasury AAA Corporate BBB Corporate B Corporate Yield ( % ) : 1 . 6 5 . 4 6 . 8 6 . 3

Security:
Treasury
AAA Corporate
BBB Corporate
B Corporate
Yield (%):
1.6
5.4
6.8
6.3
The above table shows the yields to maturity on a number of two-year, zero-coupon securities. What is the credit spread on a two-year, zero-coupon corporate bond with a B rating ?
Please be sure to express your answer without percent sign and keep one decimal places For example a credit spread of 3.5% should be entered as 3.5

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