You hold a lengthy-identity thread yielding 10 %

68. If interest rates fall shortly before you sell the bond, you will sell at a higher price than if interest rates had been constant. True

70. The total required real rate of return is equal to the real rate of return plus the inflation premium. Untrue

74. The risk premium is equal to the required yield to maturity minus both the real rate of return https://datingranking.net/tr/trueview-inceleme/ and the inflation premium. Real

75. Business risk relates to the inability of the firm to meet its debt obligations as they come due. Not the case

76. Risk premiums are higher for riskier securities, but the risk premium cannot be higher than the required return. (więcej…)

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