A widening of the difference between the return on corporate bonds and on government bonds might suggest which of the following?

Question

TuteeHUB · Accepted Answer

Interest rates are going to rise in future.

TuteeHUB · Answer

The economy is on the brink of recession.

TuteeHUB · Answer

Government bonds are becoming more risky compared to corporate bonds.

TuteeHUB · Answer

Investors should avoid government bonds.

1.	A widening of the difference between the return on corporate bonds and on government bonds might suggest which of the following?
A.	The economy is on the brink of recession.
B.	Interest rates are going to rise in future.
C.	Government bonds are becoming more risky compared to corporate bonds.
D.	Investors should avoid government bonds.
Answer» B. Interest rates are going to rise in future.

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