Acme Widget has been sued. It had been expected to lose suit and to be liable for massive payments that would have imperiled the future of the company. If Acme unexpectedly wins the suit,
A) the price of its bonds will rise.
B) the price of its bonds will fall because Acme will now be able to pay higher interest.
C) the price of its bonds will fall because investors will sell Acme's bonds and buy its stock.
D) the price of its bonds will be unchanged; once issued prices on bonds do not change.
Correct Answer:
Verified
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