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Remember that the total rate paid on corporate bonds has two components, treasury spot rate and spread that depends on default risk. Imagine that you

Remember that the total rate paid on corporate bonds has two components, treasury spot rate and "spread" that depends on default risk. Imagine that you have AAA and CCC zero coupon bonds of the same maturity. Imagine that your research shows that the spread between CCC and AAA should go down from 3% to 1% in the next year. How would you build a trading strategy to profit from your research?

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