A decline in the expected return on corporate bonds due to, Ask an Expert

Economics

A decline in the expected return on corporate bonds due to a rise in relative riskiness causes

A. an increase in the demand of default-free bonds.

B. an increase in the demand for corporate bonds.

C. a decline in the demand for default-free bonds.

D. Both (B) and (C) are correct

E. none of the above.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91678209

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