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Maturity risk and liquidity risk are equivalent terms. O True O False When inflation rates go up, bond prices go up as well. True O
Maturity risk and liquidity risk are equivalent terms. O True O False When inflation rates go up, bond prices go up as well. True O False The yield on a corporate bond with a 20 year maturity would include A. the risk-free rate multiplied by 1+ default rate. OB. the risk-free rate plus a default risk premium, a liquidity risk premium and a maturity risk premium. C. only the real rate of interest and expected inflation. D. the real rate of interest, the expected inflation rate and a default risk premium
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