What is the base interest rate- what is the yield spread


What is the base interest rate? Suppose the yield on a 10-year corporate bond is 6.2% and the yield on a similar-maturity Treasury security is 4.5%.

a. What is the yield spread for this corporate bond?

b. Why is there a yield spread between these two securities?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: What is the base interest rate- what is the yield spread
Reference No:- TGS01715650

Expected delivery within 24 Hours