Compare behavior of this data series across recessions

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Problem

Go to "Money, Banking, & Finance" and then "Interest Rates". Now click on "Corporate Bonds" and find the series "ICE BofA US High Yield Option-Adjusted Spread". a. This series represents a risk premium on corporate debt instruments (bonds) that are below investment grade. In calculating this risk premium, what type of risk is being evaluated? To what type of debt instrument is the risk of the corporate bonds compared? b. Click on "Max" for the graph's range. Download the graph and insert the image into this document. c. The last three recessions in the US occurred in 2001, 2008-09, and 2020. The 2001 recession was mild and short. The 2008-09 recession was lengthy and severe, caused by a global financial crisis. The 2020 recession was caused by pandemic shutdowns and was severe, but mainly for those industries most affected by shutdowns (e.g. hotels, restaurants, healthcare, etc.). Get the instant assignment help. Compare the behavior of this data series across the recessions. When was the perception of risk the highest? Why do you think it was highest during that particular recession?

Reference no: EM133910872

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