As technology allows information regarding the financial health of corporations to become easier to obtain, we should expect:
A) The risk spread to decrease
B) The role of bond rating agencies to become more important
C) A decrease in the number of participants in the bond market
D) The risk spread to increase

Question

Quizplus · Accepted Answer

As information becomes more accessible, investors can better assess the risk of different bonds, leading to a decrease in the risk spread.

As Technology Allows Information Regarding the Financial Health of Corporations