The major problem facing a bond analyst is the ability to forecast the basic interest rate level because yield spreads are generally inconsequential.

Question

Quizplus · Accepted Answer

The statement is incorrect. Yield spreads, or the difference between the yields of different types of bonds, can provide valuable information for bond analysts. However, forecasting the basic interest rate level is still a major challenge for analysts.

The Major Problem Facing a Bond Analyst Is the Ability