Question: help Credit ratings affect the yields on bonds. Based on the scenario described in the following table, determine whether yields will increase or decrease and

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Credit ratings affect the yields on bonds. Based on the scenario described in the following table, determine whether yields will increase or decrease and whether it will be more expensive or less expensive, as compared to other players in the market for a company to borrow money from the band market Impact on Yield Increase Cost of Borrowing Money from Bond Markets Scenario A car manufacturing company loses 40% of its market share and has a declining investment in new product development Attart-up company is struggling with finances for its projects A company's interest coverage ratio improves A company's credit rating was upgraded from A to More expensive Less expensive Grado It Now Save & Continue Continue without saving 96 6 3 I 6 8 03 w E R T Y u 1 O s D F G J K V C 0 B N

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