Question: Which of the following would decrease a bonds yield to maturity? a. The bonds price increases b. The bond is downgraded by the rating agencies.

Which of the following would decrease a bonds yield to maturity?

a.

The bonds price increases
b.

The bond is downgraded by the rating agencies.
c.

A change in the bankruptcy code makes it more difficult for bondholders to receive payments if the firm were to declare bankruptcy.
d.

Investors learn that these bonds are subordinated to another debt issue.

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