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Basic Question 4 of 4
Which statement is false?
B. A high quality issuer with a strong competitive position in a stable industry may face a upward-sloping credit spread curve.
C. In the distressed debt scenarios, the credit spread to a benchmark rate is a useful gauge to assess the credit risk.
A. High-yield issuers in cyclical industries sometimes face a downward-sloping credit spread curve.
B. A high quality issuer with a strong competitive position in a stable industry may face a upward-sloping credit spread curve.
C. In the distressed debt scenarios, the credit spread to a benchmark rate is a useful gauge to assess the credit risk.
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I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt
Learning Outcome Statements
explain the determinants of the term structure of credit spreads and interpret a term structure of credit spreads;
CFA® 2025 Level II Curriculum, Volume 4, Module 29.