Question

A decrease in the riskiness of corporate bonds will ________ the price of corporate bonds and ________ the price of treasury bonds, everything else held constant.

Answer 1

A decrease in the riskiness of corporate bonds will decrease the price of corporate bonds and increase the price of treasury bonds, everything else held constant.

A corporate bond is a debt issued by a company so as for it to raise capital. An investor who buys a corporate bond is successfully lending money to the corporation in return for a chain of hobby payments, however, those bonds might also actively alternate on the secondary market.

Corporate bonds are often seen because of the "yin" to stocks' "yang", and a key issue of any diverse portfolio. corporate bonds are diverse, liquid, and have lower volatility than shares, however, also offer usually decrease returns over the years and bring credit and hobby price danger.

Treasury bonds are authorities' debt securities issued by means of the U.S. Federal government which have maturities extra than two decades. T-bonds earn periodic hobby till maturity, at which point the owner is likewise paid a par amount identical to the essential.

Learn more about Corporate bonds here brainly.com/question/14064867

#SPJ4