Question: 7. Other things equal, the yield required on A-rated bonds should be ____ the yield required on B-rated bonds whose other characteristics are exactly the

7. Other things equal, the yield required on A-rated bonds should be ____ the yield required on B-rated bonds whose other characteristics are exactly the same.

a. greater than

b. equal to

c. less than

d. All of the above are possible, depending on the size of the bond offering.

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