Question: When the default risk on corporate bonds increases, other things equal, then : a. the price of corporate bonds increases and the yield on government

When the default risk on corporate bonds increases, other things equal, then :

a. the price of corporate bonds increases and the yield on government bonds decreases.

b. the yield on corporate bond decreases and the price of government bonds increases.

c. the price of corporate bond decreases, and the yield on government bond increases.

d. the yield on corporate bonds increases and the yield on government bonds decreases.

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