A(n) ________ in the liquidity of corporate bonds will ________ the price of corporate bonds and ________ the yield on corporate bonds, all else equal.
A. decrease; decrease; decrease
B. decrease; increase; increase
C. increase; increase; decrease
D. increase; decrease; decrease
The correct answer is c) increase; increase; decrease
Explanation:
An Increase in the liquidity of corporate bonds will Increase the price of corporate bonds and Decrease the yield on corporate bonds, all else equal.
