A(n)________ in the liquidity of corporate bonds will ________ the price of corporate bonds and ________ the yield on corporate bonds,all else equal.
A)increase;increase;decrease
B)increase;decrease;decrease
C)decrease;increase;increase
D)decrease;decrease;decrease

Question

Quizplus · Accepted Answer

An increase in the liquidity of corporate bonds makes them more attractive to investors, leading to an increase in their price and a decrease in their yield, as investors are willing to accept lower returns for more liquid assets.

A(n)________ in the Liquidity of Corporate Bonds Will ________ the Price

A(n) in the Liquidity of Corporate Bonds Will the Price