Friday, October 10, 2014

An increase in the riskiness of corporate bonds will ________ the yield on corporate bonds and...

1) An increase in the riskiness of corporate bonds will ________ the price of corporate bonds and ________ the price of Treasury bonds, everything else held constant.

A) increase; increase

B) reduce; reduce

C) reduce; increase

D) increase; reduce

2) An increase in the riskiness of corporate bonds will ________ the yield on corporate bonds and ________ the yield on Treasury securities, everything else held constant.

A) increase; increase

B) reduce; reduce

C) increase; reduce

D) reduce; increase

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