The World Equity Index Function

Question: Why did the corporate spread significantly widen during the 2008 market crash?

Answer: Corporate bond issuers go bankrupt more frequently than governments, as they do not have a tax base to fall back on in hard times

Question: what does it mean when a company’s corporate spread tightens?

Answer: the company’s bonds are outperforming the benchmark yield

Question: what are the three main transmission mechanisms by which the yield curve affects the economy?

Answer: corporate impact, global impact, consumer impact

Question: What is the 10-year to 3-month term premium of the following yield curve?

Answer: 0.079%

Question: The purchase of which of the following products is most affected by interest rates?

Answer: apartment

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