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The corporate credit spread - i.e., spread between corporate bond yields with credit risk minus the default risk free Treasury yields of the same maturity
The corporate credit spread - i.e., spread between corporate bond yields with credit risk minus the default risk free Treasury yields of the same maturity - would be an indicator of the market price of lending to risky borrowers. We would expect this spread to get bigger during recessions. True False Question 2 (10 points) Changing inflation expectations would alter the interest rate on long-term US Treasury bonds. True False
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