For an A- rated corporate bond that has deteriorat
For an A- rated corporate bond that has deteriorating fundamentals, but is expected to remain investment grade, the greatest risk is most likely:
A.liquidity risk.
B.default risk.
C.credit spread risk.
参考解答
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2024-11-14 20:36:50
Ans:C;
Credit spread risk is correct since the bond is expected to see a widening of spreads as a result of deteriorating fundamentals and a potential downgrade but still remaining investment grade.
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