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If the following statements are true, put a in the corresponding parenthesis, otherwise, put a . (2 points each) (1) Everything else equal, bond price
If the following statements are true, put a in the corresponding parenthesis, otherwise, put a . (2 points each)
(1) Everything else equal, bond price will be higher if investors are demanding a higher return rate. ( )
(2) In general, a companys corporate bonds are less risky than their common stocks. ( )
(3) In general, corporate bonds with a higher rating should have a higher YTM. ( )
(4) For a given change in market required return, the price of a bond will change by a greater amount, the longer its maturity.
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