There Are Different Recovery Conventions $\Leftrightarrow$ RT
B) RMV $\geqslant$ RT
C) Which One Is Greater Depends on the Level

Multiple Choice

There are different recovery conventions. Two common ones are RMV (recovery of market value) and RT (recovery of Treasury value) . For a given dollar value recovered on a default bond, it is generally the case that

A) RMV $\Leftrightarrow$ RT.
B) RMV $\geqslant$ RT.
C) Which one is greater depends on the level of interest rates.
D) None of the above.