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9. Which of the following financial assets is likely to have the highest required rate of return based on risk? A. Corporate bond B. U.S.

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9. Which of the following financial assets is likely to have the highest required rate of return based on risk? A. Corporate bond B. U.S. Treasury bill Certificate of deposit D. Common stock 10. A bond that has a "yield to maturity" greater than its coupon interest rate will sell for a price A. Below par value B. At par value c. Above par value D. That is equal to the face value of the bond plus the value of all interest payments 11. Which of the following is not one of the components included in the required rate of return on a bond? A. Risk premium B. Real rate of return C. Inflation premium D. Market yield 12. How will widespread adoption of electronic funds transfer affect the use of "float"? A. It will decrease its use somewhat B. It will increase its use somewhat C. It will virtually eliminate its use D. It will have no effect on its use 13. An increase in the riskiness of a particular security would NOT affect A. The risk premium for that security B. The premium for expected inflation C. The total required return for the security D. Investors' willingness to buy the security

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