T/F

a. The one-year default rate on junk bonds reached double-digits in 1991 and has never since exceeded even 4%. ____

b. The one-year default rate on investment-grade debt averages about 2%. _____

c. Most defaults occur in recessions when investment-grade firms experience a large drop in revenue._____

d. A bank that buys the CDX North America contract can reduce its transactions costs relative to buying protection on all 125 single reference names.___

e. The typical spread on a junk bond is 400 bp whereas the typical CDS premium on a junk bond is only 50 bp. ___

f. A 30 noncall life bond will experience a larger increase in value than a 30 noncall 0 bond when interest rates fall 1%. _____