Decline in the expected return on corporate bonds

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Reference no: EM13984456

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.

Reference no: EM13984456

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