Posted: September 16th, 2017

Investment “Yield Spread” and “Benchmark Index”

We must understand two very important ideas: “Yield Spread” and “Benchmark Index”.

Using the website of the Board of Governors, please graph the yield spread between AAA rated Corporate Bonds and BBB rated Corporate Bonds from 1976-2015. You must use the DDP. (Data Download program). http://www.federalreserve.gov/datadownload/Choose.aspx?rel=h15 .

You should also be able to graph the spread between 10 year constant maturity treasury securities and Baa rated corporate bonds over the period from 2005-2015.

Please describe your findings. What are the outstanding data points. You should not have to write more than 50 original words.