If the Probability of a Bond Default Increases Because Corporations

question 108

Multiple Choice

If the probability of a bond default increases because corporations begin to suffer large losses,then the default risk on corporate bonds will ________ and the expected return on these bonds will ________,everything else held constant.

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

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Definitions:

Cultural Influences

The impact of cultural factors like beliefs, values, norms, and social practices on individuals' behavior, perceptions, and understandings.

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Scientists who study how evolutionary principles like natural selection influence and explain human thoughts, behaviors, and emotions.

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Variations in characteristics, behaviors, physical development, and roles traditionally associated with men and women in a society.

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