Consider a One-Year Zero-Coupon Defaultable Bond $$r$$ And $$S$$ Denote,respectively,the Risk-Free Interest Rate and the Spread on the Bond,where

Consider a one-year zero-coupon defaultable bond.Let $$r$$ and $$S$$ denote,respectively,the risk-free interest rate and the spread on the bond,where both are expressed in simple terms with annual compounding.Suppose the risk-neutral probability of default $$\lambda$$ and the recovery rate of the bond in default $$\phi$$ remain fixed.Then,an increase in the risk-free rate must be accompanied by

A) An increase in the spread.
B) A decrease in the spread.
C) No change in the spread.
D) A change in the spread that can be positive,negative,or zero.