The absolute credit spread refers to________
A. The difference between the yields of different bonds or loans
B. The difference between the yield on a bond or loan and the yield on a risk-free bond
C. The difference between the yields of fixed-income securities and equity securities
D. None of the above
Answer:B
The absolute credit spread refers to________
A. The difference between the yields of different bonds or loans B. The difference between the yield on a bond or loan and the yield on a risk-free bond C. The difference between the yields of fixed-income securities and equity securities D. None of the above