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

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Part $1$

A$.$

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

B$.$

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

C$.$

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

D$.$

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