Go To Giddy Org Db Corpspreads The Spreads Are Listed In The Form Of Basis Point
1.Go to giddy.org/db/corpspreads.htm. the spreads are listed in the form of basis points (100 basis points = 1 percent) above the Treasury security with the same maturity.
Compare the AAA spread for a short-term maturity (such as two years) versus a long-term maturity (such as 10 years).
a. Is the spread larger for the short-term or the long-term maturity?
b. Offer an explanation for this.
2.
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