An Increase in the Riskiness of Corporate Bonds Will ________

question 79

Multiple Choice

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

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Definitions:

Wages

Compensation provided to employees for their work, often determined by the hour, day, or the amount of work completed.

Broad Groups

Categories or classifications used to organize things, people, or concepts into general and wide-ranging categories.

Profit-maximizing Strategy

A business approach aimed at increasing a firm's profit to the highest possible level given the constraints it faces.

Discrimination

Unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex, affecting societal and economic opportunities.