Question: Which of the following statements is correct? Credit spreads decrease with volatility Credit spreads increase with volatility Credit spreads do not depend on volatility The

Which of the following statements is correct?

Credit spreads decrease with volatility

Credit spreads increase with volatility

Credit spreads do not depend on volatility

The relation between credit spreads and volatility is nonlinear

Which of the followings is not an important determinant of bond credit ratings?

corporate governance risk

business risk

interest rate risk

financial risk

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