All of the Following Are True About the Risk Spread

question 56

Multiple Choice

All of the following are true about the risk spread except it should:

• A) be higher for highly speculative bonds than investment grade bonds.
• B) have a direct relationship with the bond's yield.
• C) have an inverse relationship with the bond's price.
• D) have a direct relationship with the bond's price.

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Definitions:

Catholic Church

A major worldwide Christian church led by the Pope, based in Vatican City.

Irish-Catholic Immigrants

Immigrants from Ireland, often Catholic, who moved to other countries for better opportunities or to escape hardships.

Religious Toleration

The practice of allowing and accepting religious beliefs and practices that differ from one's own, often within a society or a state.

Economic Independence

The state of having sufficient personal wealth to live, without having to depend on income from some form of employment.