In the Fall of 1998 We Saw an Increase in the Risk

Multiple Choice

In the fall of 1998 we saw an increase in the risk spread because:

A) the risk spread always increases as we approach the end of the year.
B) the Russian government defaulted on some of its bonds.
C) there was an extraordinarily large amount of corporate fraud being reported in 1998.
D) there was a significant increase in U.S. income tax rates.