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on the answer sheet
risk free spread
current yield on debt 0.03450 0.00400
3 years 0.03450 0.00440
new yield on deb 10 years 0.04200 0.00848where do the figures 0.03450 and 0.00440 come from?
On Exhibit 1, the yield corresponding to 3 years is over 0.0370; and on Exhibit 2, the spreads for AA- and 3yr is 0.0040.Anyone knows?
Katze i am stuck on the same as you have noted above, I think the 0.00400 on the current yield comes from the exhibit 2: Spreads : AA- for 3 years = 40 basis points but have no idea where the 0.3450 come from – have you had any joy with it since your post?
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I have the same question. but I don’t think yield curve would come out this year so I gave it up.
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I have the same question. but I don’t think yield curve would come out this year so I gave it up.
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I have same question, but I checked with my lecture and he told me the Q set wrongly.
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