This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: C) increase; decrease D) decrease; decrease 4) As a result of the Enron collapse and bankruptcy, the demand for low quality corporate bonds _________, the demand for high quality corporate bonds _________, and the risk spread _________. 4) _______ A) decreased; increased; was unchanged B) increased; decreased; decreased C) increased; decreased; was unchanged D) decreased; increased; increased 5) When the corporate bond market becomes less liquid, other things equal, the demand curve for corporate bonds shifts to the _________ and the demand curve for Treasury bonds shifts to the _________. 5) _______ A) right; right B) left; left C) right; left D) left; right. 6) An increase in marginal tax rates would likely have the effect of _________ the demand for municipal bonds and _________ the demand for U.S. government bonds. 6) _______ A) decreasing; decreasing B) increasing; increasing C) decreasing; increasing D) increasing; decreasing 1) B 2) B 3) B 4) D 5) D 6) D...
View Full Document