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Determine the premium contained in the yield of a 10-year corporate A-rated bond as compared with...

Determine the premium contained in the yield of a 10-year corporate A-rated bond as compared with the 10-year Treasury Bonds

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Answer #1

The 10 year Treasury note yield is ~1.126%

While the A rated corporate bond of 10 years has a yield of ~3.2%

So the premium or spread is about 3.2% - 1.126%= 2.074%

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