NO.PZ202209060200004402
问题如下：
Are Choate’s comments regarding the risk considerations for investment-grade bonds compared to high-yield bonds most likely correct?
选项：
A.No, he is incorrect with respect to investment-grade bonds.
B.Yes.
C.No, he is incorrect with respect to high-yield bonds.
解释：
SolutionB is correct. Investment-grade bonds have lower credit and default risks than high-yield bonds and are more sensitive to interest rate changes and credit migration, which cause credit spread volatility. The much higher credit loss rate experienced with high-yield bonds results in an emphasis on credit risk and the market value of the position to evaluate high-yield risk.
A is incorrect because Choate is correct with respect to both investment grade and high yield bonds.
C is incorrect because Choate is correct with respect to both investment grade and high yield bonds.
老师，答案说Investment-grade bonds have lower credit and default risks than high-yield bonds and are more sensitive to interest rate changes and credit migration。 实务中观察到HY的duration高于IG, 是否说明其对利率更敏感？那套解释可以看懂，但是D（high yield）大于D（investment grade）要如何解释，谢谢。
