Question $49$

When a company whose ability to repay its obligations in full is uncertain

its bonds will sell for higher prices than would the bonds of a company with a lower probabilt.

it must do so through financial markets rather than through financial intermediaries.

it will have to issue debt with longer maturities than would a company with a lower probability of default.

it must offer investors higher yields to compensate them for the risk they take in buying their bonds or making loans.