Further following information is available about a particular bond "˜Bond F'
There is a 10.25% risky bond with a maturity of 2.25% year(s) its current price is INR105.31, which corresponds to YTM of 9.22%. The following are the benchmark YTMs.
From the time January 2013 to April 2013, what can you predict about the market conditions, assuming the G-Sec has not changed?
The Following I 1 (18.45 KiB) Viewed 44 times
The Following I 2 (13.51 KiB) Viewed 44 times
A. There has been credit spread compression, which means the spreads have declines, which can be lead indicator of oncoming economy stress.
B. There has been widening of credit spread, which means the spreads have increased, which can be lead indicator of oncoming economy stress.
C. There has been widening of credit spread, which means the spreads have increased, which can be lead indicator of oncoming economy stress.
D. There has been credit spread compression, which means the spreads have declines, which can be lead indicator of oncoming economy boom.
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