Suppose there is a very serious flood warning for the coast of Florida. The citizens of Florida need to invest large amounts of money into preparing their homes and communities for the potential flood. This significantly reduces their wealth. At the same time it becomes clear that risk of corporate bonds issued by firms in Florida is now higher. Analysts predict, however, that government finances will be unaffected. What likely happens to bond yields in Florida, based on the demand and supply model we used in class? A. Lower wealth reduces bond demand. Higher risk reduces bond supply. Bond yields go down. B. Lower wealth reduces bond demand. Higher risk reduces bond demand. Bond yields go down. C. Lower wealth reduces bond demand. Higher risk reduces bond demand. Bond yields go up. D. Lower wealth reduces bond demand. Higher risk reduces bond supply. Bond yields go up. E. There is not enough information provided by the question. We need to know whether the wealth effect or the risk effect is stronger. F. Since government finances are unaffected, bond yields do not change