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a. Risk premiums (or risk spreads) on corporate bonds are usually anti-cyclical (or counter-cyclical), meaning that they go up in recessions and down in business-cycle

a. Risk premiums (or risk spreads) on corporate bonds are usually anti-cyclical (or counter-cyclical), meaning that they go up in recessions and down in business-cycle expansions. Why is this so?

b. Unlike corporate bonds, Treasury bonds do not pay a risk premium even in recessions. Why not?

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