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:

Moderate

Exhibiting average intensity or amount; neither extreme nor minimal.

Compromising

A conflict resolution strategy that involves finding a middle ground or mutually acceptable solution that somewhat satisfies both parties.

Win-lose

A competitive scenario where one party's gain is exactly balanced by another party's loss.

Implementing Agreement

The act of putting into practice or executing the terms and conditions of a settled deal or consensus.