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Other Fields Homework Help Economics Topic started by: valputin on Nov 28, 2015



Title: If the probability of a bond default increases because corporations begin to suffer large losses, th
Post by: valputin on Nov 28, 2015
If the probability of a bond default increases because corporations begin to suffer large losses, then the default risk on corporate bonds will ________ and the expected return on these bonds will ________, everything else held constant.
A) decrease; decrease
B) increase; decrease
C) increase; increase
D) decrease; increase


Title: Re: If the probability of a bond default increases because corporations begin to suffer large losses
Post by: Meela on Dec 2, 2015
Content hidden


Title: Re: If the probability of a bond default increases because corporations begin to suffer large losses, th
Post by: valputin on Dec 14, 2015
Correct


Title: Re: If the probability of a bond default increases because corporations begin to suffer large losses, th
Post by: Meela on Dec 14, 2015
:) Good luck with the rest