Yield spreads between corporates and Treasuries will not widen as a result of:
A)accounting scandals,such as those involving WorldCom,Enron,and Tyco in 2002.
B)changes in maturity.
C)financial crisis,such as occurred in 2008.
D)litigation,such as that involving Halliburton and other companies with asbestos exposure.

Question

Quizplus · Accepted Answer

Yield spreads between corporates and Treasuries are affected by changes in maturity. Other factors, such as accounting scandals, financial crises, and litigation may also impact yield spreads, but they are not as significant as changes in maturity.

Yield Spreads Between Corporates and Treasuries Will Not Widen as a Result