Question: everything else held constant, if the expected return on U.S. treasury bonds falls from 8 to 7 percent and the expected return on corporate bonds

everything else held constant, if the expected return on U.S. treasury bonds falls from 8 to 7 percent and the expected return on corporate bonds falls from 10 to 8 percent, then the expected return of corporate bonds ______ relative to U.S. treasury bonds and the demand for corporate bonds _____

a. rises; rises

b. rises; falls

c. falls; rises

d. falls;falls

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