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All else equal, if the government guarantees the payments on a companys bonds (i.e., makes the bond default free), then the price of the companys

All else equal, if the government guarantees the payments on a companys bonds (i.e., makes the bond default free), then the price of the companys bonds will _________ and the YTM on the bond will________.

decrease, increase

decrease, decrease

increase, decrease

increase, increase

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