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A bond trader observes the following information: - The Treasury yield curve is Downward sloping. - Empirical data indicate that a positive maturity risk premium

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A bond trader observes the following information: - The Treasury yield curve is Downward sloping. - Empirical data indicate that a positive maturity risk premium applies to both Treasury and corporate bonds. - Empirical data also indicate that there is no liquidity premium for Treasury securities but that a positive fiquidity premium is built into corporate bon vields: Which of the following is not necessarily correct? a. A 10 -year Corporate bond must have a higher veld than a 10 year Treasary bond. b. A 5 -vear corporate bond must have a higher yleld than a 1-year Tientury bond. d. A. Year corporate bond must have a higher yied than a 5 -year Treakin bond. A bond trader observes the following information: - The Treasury yield curve is Downward sloping. - Empirical data indicate that a positive maturity risk premium applies to both Treasury and corporate bonds. - Empirical data also indicate that there is no liquidity premium for Treasury securities but that a positive fiquidity premium is built into corporate bon vields: Which of the following is not necessarily correct? a. A 10 -year Corporate bond must have a higher veld than a 10 year Treasary bond. b. A 5 -vear corporate bond must have a higher yleld than a 1-year Tientury bond. d. A. Year corporate bond must have a higher yied than a 5 -year Treakin bond

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