When a company whose ability to repay its obligations in full is uncertain,
A) it will have to issue debt with longer maturities than would a company with a lower probability of default.
B) its bonds will sell for higher prices than would the bonds of a company with a lower probability of default.
C) it must offer investors higher yields to compensate them for the risk they take in buying their bonds or making loans.
D) it must do so through financial markets rather than through financial intermediaries.
C
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If you knew that two countries had the same level of real GDP per person, what additional piece of information would help you determine in which country people had a better standard of living?
A. The total physical volume of output for each country B. The average level of prices in each country C. The average number of hours worked per week in each country D. The population of each country
According to the principle of diminishing returns, if the number of workers is increased beyond the point of diminishing returns, then the additional worker
A) increases total output by more than the amount of previous workers. B) increases total output by the same amount as previous workers. C) decreases total output. D) increases total output by less than the amount of previous workers.
The current account is equal to
A) S - I. B) C + I + G + X. C) I + X. D) T - G.
Combined federal, state, and local government expenditures in the United States were approximately 9 percent of the gross domestic product (GDP) in 1930 . How large were government expenditures as a share of GDP in 2012?
a. approximately 15 percent b. approximately 25 percent c. approximately 30 percent d. approximately 38 percent