Question
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________.
Group of answer choices
decrease, decrease
decrease, increase
increase, decrease
increase, increase
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Public Finance In Theory And Practice
Authors: Richard Abel Musgrave, Peggy B. Muscrave
5th Edition
0070441278, 978-0070441279
