The Risk Premium on Corporate Bonds Becomes Smaller If

question 68

Multiple Choice

The risk premium on corporate bonds becomes smaller if

• A) the riskiness of corporate bonds increases.
• B) the liquidity of corporate bonds increases.
• C) the liquidity of corporate bonds decreases.
• D) the riskiness of corporate bonds decreases.
• E) either B or D of the above occur.

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Definitions:

Conclusion

The end or finish of an event, process, or text; in logic, it is the statement that necessarily follows from the premises of an argument.

Categorical Syllogism

A form of deductive reasoning consisting of three propositions: a major premise, a minor premise, and a conclusion, each of which states a relationship between categories.

Propositions

Statements or assertions that express judgments or opinions which can be either true or false.

Categorical Propositions

Statements in logic that assert or deny something about all or some of the members of a category, involving a subject and predicate and following specific forms.