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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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