The Yield Spread Between Junk Bonds and High Quality Bonds

question 53

Multiple Choice

The yield spread between junk bonds and high quality bonds is greatest when

• A)There is weak confidence in the economy
• B)There is strong confidence in the economy
• C)The yield curve is flat
• D)The Federal Reserve is refinancing

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Definitions:

Root Hairs

Hairlike, absorptive extensions of epidermis cells on young plant roots.

Gritty Texture

A rough or coarse texture that feels like fine particles are embedded within it.

Vascular Bundles

Structures in plants that contain xylem and phloem tissues, responsible for the transport of water, nutrients, and sugars.