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AAA-rated bonds are high risk, high yield debt instruments. True False Question 15 If a stock's expected rate of return is 10% and the required

  1. AAA-rated bonds are high risk, high yield debt instruments.

True

False

Question 15

If a stock's expected rate of return is 10% and the required rate of return is 12%, the stock is believed to be ______

Undervalued.

Overvalued.

Fairly-valued

Question 17

At maturity, the value of either premium bond is higher than its par value.

True.

False.

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