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

Question

Quizplus · Accepted Answer

During periods of economic expansion, investors typically have greater confidence in the overall health of the economy and are more willing to take risks by investing in corporate bonds. This increased demand for corporate bonds can cause the spread between their yields and the yields on U.S. Treasuries to narrow.

During Periods of Economic Expansion,the Spread Between Corporate Bonds and U.S.Treasury