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1) Which of the following statements is true? A) Investors will demand a lower rate of return on a B-rated bond than on an otherwise

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1) Which of the following statements is true? A) Investors will demand a lower rate of return on a B-rated bond than on an otherwise equivalent A-rated bond. B) If the required rate of return on a bond is higher than the coupon rate on the bond, the bond will be priced at a premium over the par value. C) If the required rate of return on a bond increases, the bond price will increase. D) Other factors are held equal. The required rate of return on a senior debenture will be lower than the required rate of return on a same-maturity subordinated debenture issued by the same firm

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