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If a news announcement is seen as positive for a company and its fixed-income instruments seem more creditworthy, what happens to bond prices and yield?

If a news announcement is seen as positive for a company and its fixed-income instruments seem more creditworthy, what happens to bond prices and yield?

  • Bond prices and yield will both likely increase.

  • Bond prices will likely fall and yield will rise.

  • Bond prices will likely rise and yield will fall.

  • Bond prices and yield will both likely decrease.

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