The expected return on a corporate bond is less than the investor required return for that bond Which of the following is the most likely market response to that relationship A The price will rise and the expected return will rise as a result of market trading of this bond B The price will rise and the expected return will fall as a result of market trading of this bond C The price will fall and the expected return will rise as a result of market trading of this bond D The price will fall and the expected return will fall as a result of market trading of this bond

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Question: The expected return on a corporate bond is less than the investor required return for that bond. Which of the following is the most likely

The expected return on a corporate bond is less than the investor required return for that bond. Which of the following is the most likely market response to that relationship?

A. The price will rise and the expected return will rise as a result of market trading of this bond.
B. The price will rise and the expected return will fall as a result of market trading of this bond.
C. The price will fall and the expected return will rise as a result of market trading of this bond.
D. The price will fall and the expected return will fall as a result of market trading of this bond.

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