NO.PZ202209060200004501
问题如下：
Which of West’s comments regarding risk considerations in corporate bonds is least likely correct?
选项：
A.Comment 1
B.Comment 3
C.Comment 2
解释：
SolutionB is correct. West is incorrect in Comment 3. Spread duration is a useful measure for determining a portfolio’s sensitivity to changes in credit spreads. Because credit spread volatility—as opposed to outright credit default loss—is more relevant for investment-grade bonds than for high-yield bonds, the risk in a portfolio of investment-grade bonds is typically measured in terms of spread duration.
A is incorrect because Comment 1 is correct. Investment-grade bonds are quoted as a spread to Treasuries and move lockstep in price with changes in interest rates. High-yield bonds are typically quoted in dollar prices or yields and may not move with rates as frequently.
C is incorrect because Comment 2 is correct. The 4 Cs of credit are used to assess creditworthiness and, as a result, can be applied to determine the probability that a borrower will default and the severity of the loss.
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