Marketing MCQ Marketing Chapter 5 If a corporation begins to suffer large losses, then the default risk on its bonds will ________ and the equilibrium interest rate on these bonds will ________.

If a corporation begins to suffer large losses, then the default risk on its bonds will and the equilibrium interest rate on these bonds will .

Marketing Chapter 5

If a corporation begins to suffer large losses, then the default risk on its bonds will and the equilibrium interest rate on these bonds will .

A) increase; decrease
B) decrease; increase
C) increase; increase
D) decrease; decrease

Answer: C) increase; increase

Marketing MCQ

If a corporation begins to suffer large losses, then the default risk on its bonds will ________ and the equilibrium interest rate on these bonds will ________.

If a corporation begins to suffer large losses, then the default risk on its bonds will ________ and the equilibrium interest rate on these bonds will ________.

Learn More :

Share this

If a corporation begins to suffer large losses, then the default risk on its bonds will and the equilibrium interest rate on these bonds will .

If a corporation begins to suffer large losses, then the default risk on its bonds will and the equilibrium interest rate on these bonds will .