The yield on NCDs is ____ the yield of Treasury bills of the same maturity. The difference between their yields would be especially large during a ____ period.

Question

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NCDs (Non-Convertible Debentures) typically offer a higher yield than Treasury bills because they carry a higher risk. The difference in yields is especially large during a recessionary period because investors demand higher yields for the increased risk of default.

The Yield on NCDs Is ____ the Yield of Treasury