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24 Oct 2018

Suppose that the yield to maturity of a 10 year maturity AAA-rated corporate bond is 3.88% and the yield to maturity of a 10-year maturity AAA rated treasury note is 3.41%; what is nominal spread

Suppose that the yield to maturity of a 5 year maturity AAA rated corporate bond is 2.43% and the yield to maturity of a 5 year AA rated corporate bond is 2.79%; what is the most important factor determining the yield spread between the two bonds

Suppose that the yield to maturity of a 5 year maturity A rated corporate bond is 4.91% and the yield to maturity of a 5 year maturity A-rated municipal bond is 3.35%; Why the yield of the municipal bond is lower than that of the corporate bond even though the two bonds have the same maturity and bond rating?

Your father recommended TIPS as inflation hedge assets. But you preferred gold under high inflation. Give me atlas two risks why you want to avoid TIPS; Hint here are some risks we went over first chapter (Interest Rate Risk ,Credit Risk, Reinvestment Risk, call risk, Liquidity Risk, inflation risk, exchange rate risk)

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Keith Leannon
Keith LeannonLv2
24 Oct 2018

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