During the Great Depression years 1930-1933 there was a very high rate of business failures and defaults, we would expect the risk premium for ________ bonds to be very high.
A) federal government
B) corporate Aaa
C) provincial
D) corporate Baa

Question

Quizplus · Accepted Answer

During the Great Depression years, many businesses failed, leading to a higher risk of default for corporate bonds. Corporate Baa bonds have a higher risk of default than Aaa bonds, so we would expect the risk premium for corporate Baa bonds to be very high during that time period.

During the Great Depression Years 1930-1933 There Was a Very