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Consider scenario where the default risk for corporate bonds decreases, relative to US while the Treasury bonds. As a result, the demand curve for corporate

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Consider scenario where the default risk for corporate bonds decreases, relative to US while the Treasury bonds. As a result, the demand curve for corporate bonds demand curve for US Treasury bonds O decreases; decreases O decreases; increases O increases; decreases O increases; increases Suppose the the liquidity of corporate bonds improves, relative to US Treasury bonds. As a result, in the bond markets, we should see a in the equilibrium price of US Treasury bonds and a in the price of corporate bonds. O decrease; decrease O decrease; increase O increase; decrease O increase; increase

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