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The yields on debt securities are likely to be higher if:

1. The borrowers credit risk increases
2. There is increased liquidity for the debt securities
3. When the investors marginal tax rate becomes higher
4. When the securities are convertible securities

Select one:

a. All of the given answers are correct

b. i and iii

c. i, iii and iv

d. i only

e. i and iv

Clear my choice