During a flight to quality, the default risk premium spread between medium-quality and low-quality Baa bonds and high-quality T-bills will

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During a flight to quality, investors move their money to safer assets, causing the default risk premium spread between riskier bonds (like medium-quality and low-quality Baa bonds) and safer assets (like high-quality T-bills) to widen.

During a Flight to Quality, the Default Risk Premium Spread