Question: Suppose the Federal Reserve adjusts its policies and the result is an unexpected increase in the yield to maturity on outstanding 10-year U.S. Treasury notes.

 Suppose the Federal Reserve adjusts its policies and the result is

Suppose the Federal Reserve adjusts its policies and the result is an unexpected increase in the yield to maturity on outstanding 10-year U.S. Treasury notes. Which of the following is most likely to happen as a result of this policy change? O The coupon rate on outstanding 10-year U.S. Treasury notes will increase. O The yield to maturity on AA-rated 10-year corporate bonds will fall. O The price of outstanding AA-rated 10-year corporate bonds will fall. O The credit spread on AA-rated 10-year corporate bonds will increase

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