Assume the following yields for different bonds issued by a corporation:
·1-year bond: 5.50%.
·2-year bond: 6.00%.
·3-year bond: 7.00%.
If a 3-year U.S. Treasury is yielding 5%, then what is the absolute yield spread on the 3-year corporate issue?

A.0.40.

B.100 bp.

C.200 bp.