Positive spreads (long term rates - short term rates) indicate a possible future recession.
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Q7: A CCC bond has higher interest rate
Q8: A change in the profit opportunities of
Q9: The liquidity premium is included in calculations
Q10: Government bonds are more liquid than corporate
Q11: If a positive liquidity premium is included
Q13: An AAA bond has lower default risk
Q14: A two-year bond is a perfect substitute
Q15: A downward sloping yield curve indicates a
Q16: A blue chip bond has greater default
Q17: An increase in expected inflation has an
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