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Considera corporation's bonds if the federal government guarantees today that it will pay creditors if the corporation goes bankrupt in the future, then interest rates

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Considera corporation's bonds if the federal government guarantees today that it will pay creditors if the corporation goes bankrupt in the future, then interest rates on the corporations bonds will decreasesince (holding all else equal) the government's guarantee will increase demand for the corporations bonds relative to demand for other securities and therefore, cause the price of the corporation's bonds to

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