Question: Increase/Decrease/ Unchanged S. How does each of these factors affect the required return on a bond (Increase, Decrease, Unchanged)? (2 points) 15 16 Higher bond

Increase/Decrease/ Unchanged S. How does each of these factors affect the required return on a bond (Increase, Decrease, Unchanged)? (2 points) 15 16 Higher bond rating 17 A callable bond 18 Tax-free interest payments 19 Collateral backing a bond 20 A Assume all bonds have a par value of S1000 and semi- 1 annual coupon payments unless otherwise noted. 2

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