$12\mathrm{.}03\%$

None of the above.

QUESTION $26$

Suppose that you are forecasting that the default spread is going to be more $p$

your following beliefs is most likely to be FALSE?

a$.$ Term spread is likely to be negative

b$.$ You believe that economic recession is looming

c$.$ You believe that the economy is going to expand

d$.$ You believe that the economy is going to contract

QUESTION $27$