If a company's sales begin to fall off so that it is now more likely to default on its bonds than financial markets had previously believed, the yields on the company's bonds will

Question

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If a company's sales begin to fall off and it is more likely to default on its bonds, investors will demand a higher return for the increased risk. This means that the yields on the company's bonds will rise to compensate investors.

If a Company's Sales Begin to Fall Off So That