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Basic Question 2 of 4
If we observe an increasing default probability but decreasing benchmark rate over longer maturity periods, we will likely see a ______ credit spread curve.
B. flat
C. downward-sloping
D. uncertain
A. upward-sloping
B. flat
C. downward-sloping
D. uncertain
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I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu
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.