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A Corporation Suffering Big Losses Might Be More Likely to Suspend

Question 3

Multiple Choice
A corporation suffering big losses might be more likely to suspend interest payments on its bonds,thereby
A) raising the default risk and causing the demand for its bonds to rise.
B) raising the default risk and causing the demand for its bonds to fall.
C) lowering the default risk and causing the demand for its bonds to rise.
D) lowering the default risk and causing the demand for its bonds to fall.

A corporation suffering big losses might be more likely to suspend interest payments on its bonds,thereby


A) raising the default risk and causing the demand for its bonds to rise.
B) raising the default risk and causing the demand for its bonds to fall.
C) lowering the default risk and causing the demand for its bonds to rise.
D) lowering the default risk and causing the demand for its bonds to fall.

Correct Answer:

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