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Under which conditions will investor demand a larger return

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Reference no: EM132778573

Problem 1: Under which conditions will an investor demand a larger return (yield) on a bond?

Multiple Choice

Option 1: The bond issue is downgraded from A to BBB.
Option 2: None of the conditions will cause an increase in the bond's yield.
Option 3: Interest rates decrease due to decline in inflation.
Option 4: The bond issue is upgraded from A to AA.

Reference no: EM132778573

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