An Increase in the Riskiness of Corporate Bonds Will ________

question 73

Multiple Choice

An increase in the riskiness of corporate bonds will ________ the yield on corporate bonds and ________ the yield on Treasury securities,everything else held constant.

• A)increase;increase
• B)reduce;reduce
• C)increase;reduce
• D)reduce;increase

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Definitions:

Crystalline Rock

A rock composed of interlocking minerals that grew together; usually formed in high-temperature environments by crystallization of magma, by metamorphism, or by precipitation from hot water.

Clastic Rock

Sedimentary rocks that are composed of fragments or clasts of pre-existing minerals and rock.

Crystalline Rock

Rock characterized by the presence of crystals or a granular texture, typically formed through the cooling and solidification of magma or lava.

Clastic Rock

is a type of sedimentary rock that is composed of fragments of pre-existing rocks.