If the yield on a 5-year U.S. corporate bond is 7.
If the yield on a 5-year U.S. corporate bond is 7.45% and the yield on a 5-year U.S. Treasury note is 4.33%, the relative yield spread of the bond is closest to:
A. 3.12%.
B. 172.06%.
C. 72.06%.
参考解答
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2024-11-14 19:23:03
Ans:C;C is correct becauseRelative yield spread= (Bond yield – Benchmark yield)/Benchmark yield= (7.45% – 4.33%)/4.33% = 72.06%.A is not correct because 3.12% is the absolute yield spread = 7.45%-4.33%=3.12%B is not correct because 172.06% is the yield ratio = 7.45%/4.33% = 172.06%
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