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.
Determination of the basis point spread of two securities with different maturities discount and premium based on their yields to maturity.
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