Historically, high default premiums have been associated with
A) economic recessions.
B) economic boom periods.
C) generally rising interest rates.
D) the number of bonds rated by Moody's and Standard & Poor's.

Question

Quizplus · Accepted Answer

High default premiums are typically associated with economic recessions because during such periods, the risk of default increases as companies and individuals face financial difficulties.

Historically, High Default Premiums Have Been Associated with