Due in part to record low interest rates on U.S.Treasury Bonds
A) investors searching for higher yields bought corporate bonds.
B) interest rates on corporate bonds rose.
C) corporations faced higher borrowing costs.
D) many corporations were at greater risk of defaulting.

Question

Quizplus · Accepted Answer

When interest rates on U.S. Treasury Bonds are low, investors tend to seek out higher yielding investments such as corporate bonds, leading to increased demand for corporate bonds.

Answer: C 
 If interest rates on U.S. Treasury Bonds are low, corporations may face higher borrowing costs as investors shift their investments to higher yielding options, such as corporate bonds.

Due in Part to Record Low Interest Rates on U