(I) If a corporate bond becomes less liquid, the interest rate on the bond will fall. (II) If a corporate bond becomes less liquid, the interest rate on Treasury bonds will fall.

(I) If a corporate bond becomes less liquid, the interest rate on the bond will fall.
(II) If a corporate bond becomes less liquid, the interest rate on Treasury bonds will fall.



A) (I) is true, (II) false.
B) (I) is false, (II) true.
C) Both are true.
D) Both are false.


Answer: B) (I) is false, (II) true.


Learn More :