During periods of economic expansion, the spread between corporate bonds and U.S. Treasuries generally:
A) widens.
B) narrows.
C) stays the same.
D) becomes negative.

Name: During periods of economic expansion, the spread between corporate bonds and U.S. Treasuries generally: A) widens. B) narrows. C) stays the same. D) becomes negative.
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Question

Quizplus · Accepted Answer

During economic expansion, the perceived risk of corporate bonds decreases, leading to a narrowing of the spread between corporate bonds and U.S. Treasuries.

During Periods of Economic Expansion, the Spread Between Corporate Bonds