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:

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