Which of the following statements is correct? Credit spreads decrease with volatility Credit spreads increase with volatility Credit spreads do not depend on volatility The relation between credit spreads and volatility is nonlinear   Which of the followings is not an important determinant of bond credit ratings? corporate governance risk business risk interest rate risk financial risk

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Which of the following statements is correct?

Credit spreads decrease with volatility

Credit spreads increase with volatility

Credit spreads do not depend on volatility

The relation between credit spreads and volatility is nonlinear

 

Which of the followings is not an important determinant of bond credit ratings?

corporate governance risk

business risk

interest rate risk

financial risk

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