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Consider a fixed rate, option-free corporate bond. Under which situation will its price increase? (10 points) Increase in rate of an otherwise similar Treasury bond.

  1. Consider a fixed rate, option-free corporate bond. Under which situation will its price increase? (10 points)
    1. Increase in rate of an otherwise similar Treasury bond.
    2. Increase in leverage.
    3. Increase in company profitability.
    4. Increase in company uncertainty.

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