Question: Determination of the basis point spread of two securities with different maturities discount and premium based on their yields to maturity.
The spread between TEX corporation's note with a coupon of 6.5%, seven-year remaining term, and selling for 101-3/8 and ACME corporation's debenture with a coupon of 9.5%, 18-year remaining term and selling for 98-3/4 is:
a. 338 basis points.
b. 339 basis points.
c. 340 basis points.
d. 341 basis points.