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10. Indicate whether each of the following is TRUE FALSE A discount bond has a coupon rate higher than the bonds required return ( interest
10. Indicate whether each of the following is TRUE FALSE A discount bond has a coupon rate higher than the bonds required return ( interest rates increase . bonds expected price intrinsie value decreases . The lower the credit rating of a bondthe higher the risk and therefore the higher the coupon rate. Beta is a measure of diversifiable risk Beginning with an investment in one companys securities as we add securities of other companies to our portfolio , diversifiable risk declines
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