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In the equation for the price of a coupon bond, to the right of the equal sign, there are two parts. The first part represents
In the equation for the price of a coupon bond, to the right of the equal sign, there are two parts. The first part represents while the part on the far right represents
Multiple choice question.
the interest; the value of the promise to repay the principal at maturity
the riskfree interest rate; the risk premium
the value of the promise to repay the principal at maturity; the rate of inflation
the risk premium; the riskfree interest rate
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