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Questions

BU.230.730.81.SP25 Final Exam- Requires Respondus LockDown Browser

Single choice

I am a bond investor of firm A. I am happy to see A's stock price go up.

Options
A.Make sense
B.Make no sense
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Step-by-Step Analysis
The prompt presents a scenario: a bond investor in firm A is happy to see A's stock price go up. Option 1: 'Make sense' — This could be argued if you consider that higher stock price might reflect better overall company health, potentially lowering perceived default risk and improving the firm’s financial standing. However, for a bond investor, stock price movements are n......Login to view full explanation

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