CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

Both the 10-year, 2.22% T-bond and the 10-year, 4.22% bond issued by GE are selling for $100. Assuming annual compounding, the G spread on the GE bond is closest to ______.
A. 200 basis points
B. 232 basis points
C. 218 basis points
Explanation: Since they are selling at par, their yields to maturity are equal to their coupon rates respectively (4.22% - 2.22% = 200 basis points).

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