The Risk Spread

question 43

Multiple Choice

The risk spread:

• A) Is also known as the default-risk premium
• B) Should have a direct relationship with the bond's price
• C) Should have an inverse relationship with the bond's yield
• D) Is always constant

---

Definitions:

Hydrogen Atoms

The simplest type of atom, consisting of one proton and one electron, fundamental to the structure of organic molecules.

Cis-1-T-Butyl-4-Methylcyclohexane

A specific isomer of a chemical compound characterized by the cis configuration of 1-tert-butyl and 4-methyl groups on a cyclohexane ring.

Stable Conformation

A specific spatial arrangement of the atoms in a molecule that is energetically favorable and has minimal strain.

Equilibrium Constants

Represents the ratio of concentrations of products to reactants at equilibrium, specific to a particular chemical reaction, denoted as K_eq.