Answer Happy

[Related to Solved Problem 5.1] In early 2020, an article in the Wall Street Journal described the effect on the bond market of the spread of the coronavirus. According to the article, fears that the coronavirus would lead to a worldwide slowdown in economic growth caused investors to engage in a "flight to safety." When bond market investors engage in a flight to safety, are they likely to buy more Treasury bonds or more corporate bonds? O A. O B. O C. O D. Corporate bonds since they only have interest rate risk while Treasury bonds have both interest rate and default risk. Treasury bonds since they have no risk while corporate bonds have interest rate risk. Corporate bonds since they have no risk while Treasury bonds have interest rate risk. Treasury bonds since they only have interest rate risk while corporate bonds have both interest rate and default risk.