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7. For each of the following actions, will the bond's yield to maturity increase or decrease, and why? (5 points) a. The bond's price increases

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7. For each of the following actions, will the bond's yield to maturity increase or decrease, and why? (5 points) a. The bond's price increases b. The bond is downgraded by the rating agencies C. A change in the bankruptcy code makes it more difficult for bondholders to receive payments in the event the firm declares bankruptcy d. The economy seems to be shifting from a boom to recession (discuss the effects of a firm's credit strength in your answer) e. Investors learn that the bonds are subordinated to another debt issue

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