6. The spread between ACME 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.
8. The asking yield on a Treasury note with one year remaining to maturity is 2.31%. The asking yield on a Treasury note with two years remaining to maturity is 3.12%. Using simple linear extraction, calculate the asking yield on a Treasury note with 1.5 years remaining to maturity.
We examine the basis point spread of two bond securities with different maturities