Which of the Following Will Result in a Decrease in the Price

question 5

Multiple Choice

Which of the following will result in a decrease in the price of an existing corporate bond?

• A) lower expectations of inflation
• B) new bonds issued at a lower interest rate
• C) increased default risk
• D) all of the above

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Definitions:

Membrane Depolarization

The process by which a cell's membrane potential becomes less negative (or more positive), often leading to the initiation of an action potential in neurons.

Hyperpolarization

An increase in a cell's membrane potential, making it more negative and less likely to initiate an action potential.

Degradation

The process of breaking down or decomposing substances into simpler forms, as in the breakdown of proteins into amino acids.

Synaptic Cleft

A gap between two nerve cells where neurotransmitters are released from the presynaptic neuron to send signals to the postsynaptic neuron.