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If a Corporation's Earnings Rise,then the Default Risk on Its

question 20

Multiple Choice

If a corporation's earnings rise,then the default risk on its bonds will ________ and the equilibrium interest rate on these bonds will ________.


Definitions:

Aristocracy

A class of people holding exceptional rank and privileges, especially the hereditary nobility.

Scorned

Felt or expressed contempt or disdain towards someone or something.

Artists

Creative individuals who produce art, such as paintings, sculptures, music, and literature.

Puncture

A small hole made by a sharp object such as a needle or nail.

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