The bankruptcy of the Enron Corporation increased the spread between Baa and Aaa rated bonds. This is due to
A) a reduction in risk.
B) a reduction in maturity.
C) a flight to quality.
D) a flight to liquidity.
Answer: C
The bankruptcy of the Enron Corporation increased the spread between Baa and Aaa rated bonds. This is due to
A) a reduction in risk.
B) a reduction in maturity.
C) a flight to quality.
D) a flight to liquidity.
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