Question: The credit spread is the difference in YTM between corporate bonds and Treasury bonds of similar maturities. Explain why the credit spread correlates closely with

The credit spread is the difference in YTM between corporate bonds

The credit spread is the difference in YTM between corporate bonds and Treasury bonds of similar maturities. Explain why the credit spread correlates closely with stock volatility across time, as we have shown in the class. (10 points) 1

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