Determination of the basis point spread

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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.

Reference no: EM1330887

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