Credit Spreads on corporate bonds appear to overcompensate the investor for expected loss from default True False Question 2 (1 point) When we back out implied Hazard rates from corporate bond yield spreads or, alternatively, from CDS spreads, the Hazard rates implied by bond yield spreads would be higher than those implied by CDS spreads. True False Question 3 (1 point) A bank that had a netting agreement in place with Lehman Brothers would likely have lost less money on its derivative exposure with the failed institution True False Question 4 (1 point) Assuming a recovery rate of 55%, a spread of 90 basis points above the risk free rate on a new corporate bond issue with a term of 10 years implies an average annual hazard rate of 2.40% over the 10 years 5. True False =