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Got both of these Incorrect. What are the answers? The market discount rate that bond investors are using to price the expected cash flows of
Got both of these Incorrect. What are the answers?
The market discount rate that bond investors are using to price the expected cash flows of the bond is called . Bond investors will use a higher discount rate if the bond is riskier which results in a bond price. Market risk premium; higher Market risk premium; lower Yield-to-maturity; lower Yield-to-maturity; higher Question 11 0/2 pt Which of the following statements is correct? S1: Holding all else unchanged, as a result of price risk the interest rates for long-term bonds are lower than the interest rates for short-term bonds. S2: Reinvestment risk of a short-term bond is lower than the reinvestment risk of a long-term bond. S1 is true but S2 is false Both statements are true Both statements are false S2 is true but S1 is falseStep by Step Solution
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