Which of the Four Major Yield Spreads Defines the Difference

question 86

Multiple Choice

Which of the four major yield spreads defines the difference in yields between pure government agency bonds and corporate bonds?

• A) Segments
• B) Sectors
• C) Coupons
• D) Seasoning
• E) Maturity

---

Definitions:

Producer Surplus

The disparity between the minimum amount producers are prepared to take for a product or service and the higher amount they end up getting.

Blockade

An act of sealing off a place to prevent goods or people from entering or leaving, typically implemented as a form of economic or military pressure.

Producer Surplus

The difference between what producers are willing to sell a good for and the actual price they receive.

Autarky

A financial strategy or condition where a nation is independent and refrains from participating in global commerce.