FIN 351 CHAPTER 12 QUIZ 48

FIN 351 CHAPTER 12 QUIZ  48
  As the economy recovers from a recession, what changes can be expected in the yield spread of corporate Baa bonds and U.S.
government bonds?
A. The yield on Baa bonds will approach that of government securities
B. The yield spread between U.S. government bonds and BBB corporate bonds will stay the same
C. The yield spread will increase
D. Either a or b will occur

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