What is the highest S&P rating for junk (speculative and high yield) bonds:

A steep yield curve implies that:

• A. a recession is brewing.
• B. investors are sensing and hoping for a continued recovery.
• C. long-term rates are lower than short-term rates.
• D. None of the above statements is correct.

A. CC

B. A

C. AA

D. BB

E. BBB