The risk premium of corporate bonds typically increases
A) when the average price of corporate bonds increase.
B) during a recession.
C) when the interest rates on corporate bonds decreases.
D) when the risk premium on treasury bonds increases.
B
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Which of the following is a similarity between a bank loan and a bond? a. Only large business houses can raise funds from these two methods
b. Only small business houses can raise funds from these two methods. c. Funds raised from both methods have a fixed tenure for repayment. d. Interest is required to be paid on the funds raised from both bonds and bank loans.
The advent of DVDs has virtually demolished the market for videocassettes. This is an example of:
A. creative destruction. B. derived demand. C. capital accumulation. D. the difference between normal and economic profits.