The Credit Spread of a Bond Shrinks If It Is

question 44

True/False

The credit spread of a bond shrinks if it is perceived that the probability of the issuer defaulting increases.

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Definitions:

Ethical Rule

Guidelines or principles designed to govern behaviors within specific professional fields or societal norms.

Termination of Offer

The revocation or withdrawal of a proposal by the offeror before it has been accepted by the offeree.

Counteroffer

A proposal made in response to an original offer, modifying its terms and conditions, which effectively rejects the initial offer.

Material Term

A significant provision in a contract that notably affects the rights and obligations of the parties involved.