Describe how the downgrading of bonds for a particular

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Question 1: Explain how the credit crisis affected the default rates of junk bonds and the risk premiums offered on newly issued junk bonds.

Question 2: Explain how the downgrading of bonds for a particular corporation affects the prices of those bonds, the return to investors that currently hold these bonds, and the potential return to other investors who may invest in the bonds in the near future.

Question 3: Explain how bond prices may be affected by money supply growth, oil prices, and economic growth.

Reference no: EM13477922

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