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Creditworthiness A drop in which of the following measures would typically send a government bond price down? Inflation Government borrowing Interest rates

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Tim

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Answer:

Option A: Creditworthiness

A creditworthiness can provide information about an issuer’s ability to make interest payments and repay the principal on a bond. If the issuer’s creditworthiness goes up, the price of government bonds will rise. If the creditworthiness goes down, it will drive government bond prices to go down.

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