Question: Based on the curves, what is the spread pattern between government and corporate bonds? The spreads agg narrow in the short - term and then
Based on the curves, what is the spread pattern between government and corporate bonds?
The spreads agg narrow in the shortterm and then gradually widen in the longterm making it relauvely more attractive for corporations to borrow in the longterm.
The spreads are wide in the shortterm and then gradually decrease in the long term making it relatively mere attractive for corporations to bornow in the longterm.
The spreads are narrow in the shortterm and then gradually widen in the longterm making it mlatively less artractive toc corporations to bernow in the longterm.
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