Which of the following statements are TRUE?
A)A decrease in default risk on corporate bonds lowers the demand for these bonds,but increases the demand for default-free bonds.
B)The expected return on corporate bonds decreases as default risk increases.
C)A corporate bond's return becomes less uncertain as default risk increases.
D)As their relative riskiness increases,the expected return on corporate bonds increases relative to the expected return on default-free bonds.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements are TRUE?
A)A decrease in default risk on corporate bonds lowers the demand for these bonds,but increases the demand for default-free bonds.
B)The expected return on corporate bonds decreases as default risk increases.
C)A corporate bond's return becomes less uncertain as default risk increases.
D)As their relative riskiness increases,the expected return on corporate bonds increases relative to the expected return on default-free bonds.

Which of the Following Statements Are TRUE