Holding Everything Else the Same,if a Corporation's Earnings Rise,then the Default

question 96

Multiple Choice

Holding everything else the same,if a corporation's earnings rise,then the default risk on its bonds will ________ and the expected return on those bonds will ________.

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

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Definitions:

Double Jeopardy

A legal principle that prohibits an individual from being tried twice for the same offense in a court of law.

Ethnic Minority

A sociodemographic group that has a smaller population and different cultural practices or origins compared to the prevailing majority in a society.

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Later Life

Refers to the period in an individual's life typically associated with retirement and an increased likelihood of health-related issues due to aging.