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If Moody's or Standard and Poor's downgrades its rating on a corporate bond, the demand for the bond and its yield. increases; decreases decreases; increases
If Moody's or Standard and Poor's downgrades its rating on a corporate bond, the demand for the bond and its yield. increases; decreases decreases; increases increases; increases decreases; decreases In the period since Standard and Poor's downgraded the credit rating on U.S. Treasury bonds, the spread between the yields on long-term T-bonds and AAA-rated corporate bonds has reversed, indicating that T-bond yields are now higher. True False A decrease in marginal tax rates would likely have the effect of the demand for municipal bonds and the demand for U.S. government bonds. increasing; increasing increasing; decreasing decreasing; increasing decreasing; decreasing Yield curves can be classified as upward-sloping. downward-sloping. flat. all of the above. only A and B of the above
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