A decline in the expected return on corporate bonds due to


A decline in the expected return on corporate bonds due to a rise in relative riskiness causes

A. an increase in the demand of default-free bonds.

B. an increase in the demand for corporate bonds.

C. a decline in the demand for default-free bonds.

D. Both (B) and (C) are correct

E. None of the above.

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Financial Management: A decline in the expected return on corporate bonds due to
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