Ask Question
BusinessBusiness
17 January, 03:08

The spread between the interest rates on Baa corporate bonds and U. S. government bonds is very large during the Great Depression years 1930-1933. Explain this difference using the bond supply and demand analysis.

+1
Answers (1)
  1. 17 January, 04:08
    0
    During the Great Depression many businesses failed. The default risk for the corporate bond increased compared to the default-free Treasury bond. The demand for corporate bonds decreased while the demand for Treasury bonds increased resulting in a larger risk premium.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The spread between the interest rates on Baa corporate bonds and U. S. government bonds is very large during the Great Depression years ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
What do you call a chicken that crosses the road
Answers (2)
A dress is marked down by 20% in an effort to boost sales for one week. after that week, the price of the dress is brought back to the original value. what percent did the price of the dress have to be increased from its discounted price
Answers (1)
Jacob gives stock (basis of $900,000 and fair market value of $2,200,000 to mandy. as a result of the transfer, jacob paid a gift tax of $90,000.
Answers (1)
Chobani launched a campaign, called "the break you make," in 2015 to increase awareness of the chobani flip, an afternoon snack yogurt.
Answers (1)
The intensive care unit lab process has an average turnaround time of 26.2 minutes and a standard deviation of 1.35 minutes. The nominal value for this service is 25 minutes 5 minutes. Is the lab process capable of four sigma-level performance
Answers (1)
New Questions in Business
Employers may require job candidates take a personality test to make sure they are the right fit for their company. true or false
Answers (1)
Which of the following is an illegal marketing practice? A. Premium pricing B. Loss-leader pricing C. Bait-and-switch D. Vertical price fixing E. Prestige pricing
Answers (1)
How successful were the redeemers at using the "race card" to promote their agendas?
Answers (1)
Which education and qualifications are especially useful for Food Products and Processing Systems careers? Check all that apply.
Answers (1)
Marks Corporation's balance sheet appears below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Cash and cash equivalents $ 47 $ 37 Accounts receivable 53 57 Inventory 63 60 Property, plant, and equipment 548 440 Less accumulated
Answers (1)
Home » Business » The spread between the interest rates on Baa corporate bonds and U. S. government bonds is very large during the Great Depression years 1930-1933. Explain this difference using the bond supply and demand analysis.
Sign Up Forgot Password?