The price on a Treasury bond is 104.3625, with a yield to maturity of 3.45%. The price on a comparable maturity corporate bond is 103.75, with a yield to maturity of 4.59%. What is the approximate percentage value of the credit risk of the corporate bond
Credit risk is the spread over the risk free bond. It is the difference between the yield to maturity of a risky bond and the yield to maturity of a risk free bond (the treasury bond)
