The Following Figure Shows the BAA Corporate and 10-Year Treasury

Multiple Choice

The following figure shows the BAA corporate and 10-Year Treasury Bond yields. Refer to this figure when answering
Figure 14.1: BAA and 10-Year Bonds, 2006-2010
(Source: Federal Reserve Economic Data, St. Louis Federal Reserve)
-In Figure 14.1 above, the financial friction in late 2008 was about ________ percent.

A) 9.5
B) 11
C) 6
D) -7
E) Not enough information is given.