Which of the following will cause the yield (interest rate) of a corporate bond to increase (all else same)?
a) a deterioration in the company's credit worthiness
b) an improvement in the company's creditworthiness
c) an increase in the yield of a US Treasury bond of similar maturity
d) a decrease in the yield of a US Treasury bond of similar maturity
Answer:
a) a deterioration in the company's credit worthiness
c) an increase in the yield of a US Treasury bond of similar maturity
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