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Previous Page Next Page Page 1 of 10 Question 1 (0.15 points) Refer to the data below to determine the primary reason for the difference

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Previous Page Next Page Page 1 of 10 Question 1 (0.15 points) Refer to the data below to determine the primary reason for the difference in expected yields of the two securities: BOND1: Intel Corp bond; Expected Inflation 4.5%; Maturity Date 7-01-2015; Credit Rating AAA; Traded Over the Counter (OTC); Expected Yield 8% BOND2: Microsoft Corp. bond; Expected Inflation 4.5%; Maturity Date 7-01-2025; Credit Rating AAA; Traded Over the Counter (OTC); Expected Yield 10% A) inflation premium B) default risk premium 1 C) maturity risk premium D) liquidity premium Question 2 (0.15 points) An investor will not take additional risk unless A) the investor expects to receive a lower return MacBook A Songs 2 + 3 $ 4 % 5 & 7 6 8 9 W E 20 T Y S D F H K

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