Investors view an increase in the default risk of corporate bonds, relative to US Treasury bonds. Consequently, in the market for bonds the yield on US Treasury bonds yield on corporate bonds while the increases; increases increases; decreases decreases; increases decreases; decreases
Investors view an increase in the default risk of corporate bonds, relative to US Treasury bonds. Consequently, in the market for bonds the yield on US Treasury bonds yield on corporate bonds while the increases; increases increases; decreases decreases; increases decreases; decreases
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Investors view an increase in the default risk of corporate bonds, relative to US Treasury
bonds. Consequently, in the market for bonds the yield on US Treasury bonds while the
yield on corporate bonds
increases; increases
increases; decreases
decreases; increases
decreases; decreases
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