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Basic Question 3 of 6

An issuer with zero default probability and a 50% of recovery rate should have a credit spread of ______.

A. zero
B. 50 basis points
C. 100 basis points

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Craig Baugh

Craig Baugh

Learning Outcome Statements

interpret changes in a credit spread;

CFA® 2025 Level II Curriculum, Volume 4, Module 29.