An Increase in Default Risk on Corporate Bonds ________ the Demand

question 31

Multiple Choice

An increase in default risk on corporate bonds ________ the demand for these bonds,but ________ the demand for default-free bonds,everything else held constant.

• A)increases;lowers
• B)lowers;increases
• C)does not change;greatly increases
• D)moderately lowers;does not change

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Definitions:

Internal Splines

Grooves or teeth cut internally into a hole, designed to fit with corresponding external splines for torque transmission.

Hardened

A process or condition of making or becoming more rigid, tough, or resistant usually through heat treatment or alloys in metals.

Vocational Off-highway

Pertaining to specialized vehicles used in industries such as construction, mining, and agriculture that operate primarily off public roads.

Linehaul Trucking

The transportation of goods over long distances, typically between cities or major ports, using large trucks.