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

Quizplus · Accepted Answer

Non-Convertible Debentures (NCDs) are riskier than Treasury bills, which makes their yields higher. During a recessionary period, the difference between the yields of NCDs and Treasury bills would be especially large due to higher perceived risks.

The Yield on NCDs Is ____ the Yield of Treasury