Question

​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

Answer 1

The correct answer is c) ​increase; increase; decrease

Step-by-step 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.