Assume you own $10,000 in corporate bonds that mature in 10 years. Under which of the following cases can we expect a decrease in the value of the…

Question 2 options:

A. The rating on the bonds increases from A+ to AA+.

B. Inflation has risen to a level of concern at the Federal Reserve Board (e.g. 5%).

C. We expect a severe recession in the near future.

D. There is a significant increase in worker productivity.