Risk premiums on corporate bonds are usually anticyclical; that is, they decrease during business cycle expansions and

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Risk premiums on corporate bonds are usually anticyclical; that is, they decrease during business cycle expansions and increase during recessions. Why is this so? Discuss.

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Financial Markets And Institutions

ISBN: 978-0132136839

7th Edition

Authors: Frederic S. Mishkin, Stanley G. Eakins

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Question Posted: Nov 12, 2012 01:09 AM

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Risk premiums on corporate bonds are usually anticyclical; that is, they decrease during business cycle expansions and

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During business cycle booms fewer corporations go bankrupt and there i...View the full answer

Financial Markets And Institutions

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