On 11/1/2019, you are looking at Dow Chemical (CUSIP 260543BJ1) corporate bond paying 7.375% fixed (semiannual) coupon and maturing on 11/1/2029. The yield to maturity is 4.58%, implying a yield spread of 188 bps over 10-year Treasury note. Note the day count convention is 30/360.

c. If Dow announces earnings that are significantly below analysts expectations, how is the credit spread likely to change- increase, flat, or decrease? Explain briefly.