You work for Titan Financial who will purchase $85 million in corporate junk bonds or U.S. Treasurys. Your supervisor expects a weak economy in the future. Thus, your supervisor asks you to explain what will happen to the yield spread, between corporate junk bonds and U.S. Treasurys, if the economy experiences a strong downturn. Explain your answer.

Answer rating: 100% (QA)

If the economy experiences a strong downturn there are several factors that can affect the yield spr... View the full answer