(SOLVED) Free online yield to maturity and credit spread data for Canadian corporate


Question Description:

$15

Free online yield-to-maturity and credit spread data for Canadian corporate bonds with different debt ratings is not available. However, old U.S. data is available at www.bondsonline.com/Todays.Market/Corporate.Bond.Spreads.php. You will see a table showing credit sp reads for corporate bonds of different risk over comparable-term U.S. government bonds from 2006. The spreads are measured in bas is points, where 1 basis point equals .01 (l/100) percentage point. Using the 2006 credit spread data and the current yield to maturity for U.S. Treasury bonds, estimate the required rate of return on a 10-year debt issue by a U.S. company with A2/A-rated debt. What if its debt had a B2/B rating? Current yields to maturity on U.S. Treasury bonds are available at finance.yahoo.com/bonds/ composite_bond_rates.

Answer

$15