Question: Use the following information to answer thequestion(s) below. Security Term (years) Yield (%) Treasury 20 5.5% AAA Corporate 20 7.0% BBB Corporate 20 8.0% B

Use the following information to answer thequestion(s) below.

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 AAArated corporate bondsis:

A.

4.1%

B.

1.5%

C.

1.0%

D.

2.6%

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