All of the Following Are True About the Risk Spread

question 82

Multiple Choice

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

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

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Definitions:

Quality Problems

Issues related to the inferior performance, defects, or non-conformity of a product or service.

Frequency

The rate at which something occurs or is repeated over a particular period of time or in a given sample.

Six Sigma

A set of techniques and tools for process improvement, aimed at reducing variability and defects in manufacturing and business processes.

Quality Management System

A framework of processes and procedures used to ensure that an organization can consistently meet customer and regulatory requirements for quality.