Benjamin Zoeller and Tara McGonigal are pr

问题单项选择题

Benjamin Zoeller and Tara McGonigal are preparing for the Level I CFA examination. Zoeller is studying credit spread risk. McGonigal is farther along in her studies, but has forgotten how to determine the default free rate if given the yield on a bond rated BBB + of 9.50 percent and a risk premium of 3.00 percent. What does Zoeller tell her to use for the default free rate（）

A. 12.50%.

B. 4.50%.

C. 6.50%.

答案

参考答案：C

解析：

The formula for credit spread risk( or the yield on a risky asset) is:

Yield_Risky = Yield_RF + Risk Premium, where RF = default - free rate.

Rearranging this formula results in : Yield_RF = Yield_Risky = Risk Premium, or Yielder = 9.50%-3.00%=6.50%.