Use the following information for Questions. Peter is considering two bonds: Bond A yield 10% Bond B yield 7 %

Using Bond B as the reference bond, calculate the relative yield spread.（）

单项选择题Using Bond B as the reference bond, calculate the absolute yield spread.（）

A. -3.0%.
B. 0%.
C. 3%.

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%.