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What is the yield spread of the ford bond

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Reference no: EM132538555

You are interested in a 10-year Ford bond, which is trading at a yield to maturity of 4.1%. The most recently issued 10-year Treasury bond had a yield of 2.1%.

a. What is the yield spread of the Ford bond?

b. News reaches the market that the Ford stock price decreases substantially. What will be the effect on the price and the yield spread of the Ford bond?

Reference no: EM132538555

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