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5-22 (static) rest pre um shaky Company has Just issued a five-year bond witn a yeld of 9%, stable company has issued an identical nve-year

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5-22 (static) rest pre um shaky Company has Just issued a five-year bond witn a yeld of 9%, stable company has issued an identical nve-year bond, but with a yeld or 7%. why dd he manet demand a higher re mtrom s Select the best response.) A. Companies with poor fnanaals tend to compensate investors for te oiaty nsk by issuing bonds with high yelds. B. Companies with poor fnancials tend to compensate investors for the inflation risk by issuing bonds with high yields C. Compares with poor fnancais tend to compensate investors for the default nsk by issuing bonds with high yies D. Companies with poor fnancials tend to compensate investors for the systematic nisk by issuing bonds with high yields

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