The risk premium on corporate bonds becomes smaller if

The risk premium on corporate bonds becomes smaller if



A) the riskiness of corporate bonds increases.
B) the liquidity of corporate bonds increases.
C) the liquidity of corporate bonds decreases.
D) the riskiness of corporate bonds decreases.
E) either B or D of the above occur.


Answer: E) either B or D of the above occur.


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Marketing Chapter 5

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