Question: You are trying to find the correct yield difference between a 15-year maturity bond rated A, and a 15-year maturity bond rated AAA. You find
You are trying to find the correct yield difference between a 15-year maturity bond rated A, and a 15-year maturity bond rated AAA. You find that a 15-year maturity, AA rated bond's yield is 75 basis points greater than a AAA rated bond, while that of a 15-year maturity A-rated bond's yield is 90 basis points greater. Which of the following should be a possibility for the yield difference of the A rated bond? (100 basis point equals 1%. No calculations needed.) 74 basis points 80 basis points 90 basis points both b and c are possible spreads for the bond
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