Everything Else Held Constant,if the Expected Return on U

question 74

Multiple Choice

Everything else held constant,if the expected return on U.S. Treasury bonds falls from 8 to 7 percent and the expected return on corporate bonds falls from 10 to 8 percent,then the expected return of corporate bonds ________ relative to U.S. Treasury bonds and the demand for corporate bonds ________.

• A)rises;rises
• B)rises;falls
• C)falls;rises
• D)falls;falls