Q56 An analyst notes that the yield on a 10-year corporate bond is 6.15% and the yield on a 10-year government bond is 4.20%. The relative yield spread and yield ratio, respectively, for the two bonds are closest to :
Because the default-free bond .(g4vernmeut bond ) is the benchmark bond. The relative yield spread is (6;15.4.2)/4.2=0.464 and the yield ratio is 6.15/4.2=1.46.