Loras College’s bond is currently trading at a spread of 55.2 basis points to Treasuries and the yield on Treasury notes is 2.153%, the yield on the Loras College is closest to   A. 2.2082%. B. 2.7050%. C. 3.1075%.

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter5: The Cost Of Money (interest Rates)
Section: Chapter Questions
Problem 17PROB
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If Loras College’s bond is currently trading at a spread of 55.2 basis points to Treasuries and the yield on Treasury notes is 2.153%, the yield on the Loras College is closest to

 

A.

2.2082%.

B.
2.7050%.
C.

3.1075%.

D.
3.8750%.
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