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Consider two bonds: A 30-year zero coupon treasury bond and a 10-year 8% General Motors bond. Which of the following is true A. The General

Consider two bonds: A 30-year zero coupon treasury bond and a 10-year 8% General Motors bond. Which of the following is true

A. The General Motors bond should have a lower default premium than the treasury bond

B. The General Motors should have a lower duration than the treasury bond

C. If you expected the yield to maturity for each bond to drop by the same amount (but nothing else changes about the bonds), you would make the most money with the General Motors bond.

D. The treasury bond will have the most reinvestment risk

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