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Question 18 All else equal, if the government guarantees the payments on a companys bonds (i.e., makes the bond default free), then the price of

Question 18

All else equal, if the government guarantees the payments on a companys bonds (i.e., makes the bond default free), then the price of the companys bonds will _________ and the YTM on the bond will________.

Group of answer choices

increase, decrease

decrease, increase

increase, increase

decrease, decrease

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