Assignment:
Q1. The value of a Treasury security should be based on discounting each cash flow using the corresponding Treasury spot rate. Explain why this is true.
Q2. a. What is the typical relationship between credit spreads and term to maturity?
b. How does this relationship change as credit ratings decline?
Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.