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ou observe the following from the Treasury yield curve: YTM of 3.11% on 10-year Treasuries;
YTM of 5.24% on 5-year Treasuries; YTM of 2.10% on 2-year reasuries. If the average YTM
on 5-year BBB bonds is 12.32%, what is the credit spread for 5-year BBB debt? Enter your
answer as a decimal and show four decimal laces. For example, if your answer is 5.25%, enter
.0525 .

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  • 1. ou observe the following from the Treasury yield curve: YTM of 3.11% on 10-year Treasuries; YTM of 5.24% on 5-year Treasuries; YTM of 2.10% on 2-year reasuries. If the average YTM on 5-year BBB bonds is 12.32%, what is the credit spread for 5-year BBB debt? Enter your answer as a decimal and show four decimal laces. For example, if your answer is 5.25%, enter .0525 .