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A decline in the expected return on corporate bonds due to a rise in relative riskiness causes A. an increase in the demand of default-free
A decline in the expected return on corporate bonds due to a rise in relative riskiness causes
A. | an increase in the demand of default-free bonds. | |
B. | an increase in the demand for corporate bonds. | |
C. | a decline in the demand for default-free bonds. | |
D. | Both (B) and (C) are correct | |
E. | none of the above. |
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