What is the yield spread for this corporate bond

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Reference no: EM131312978

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?

Reference no: EM131312978

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