If a Country Has a Poorly Functioning Risk Structure of Corporate

question 73

Multiple Choice

If a country has a poorly functioning risk structure of corporate bond yields,

• A)yields on long-term bonds will be relatively low.
• B)the country's tax code will have to be adjusted to reflect this.
• C)low interest rates will lead to rapid rates of growth in physical capital.
• D)corporations will rely more heavily on bank loans and on new equity issues.

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Definitions:

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