Question
Question 42 Conjectural Technologies and Impossible Industries have the same level of default risk. However, Conjectural Technologies is a small firm with only a small
Question 42
Conjectural Technologies and Impossible Industries have the same level of default risk. However, Conjectural Technologies is a small firm with only a small number of bonds issued and in circulation and minimal demand exists for its bonds. Impossible Industries has a large number of bonds in circulation that are widely traded and very high levels of demand for its bonds. Which bond will have a higher yield?
A) | Conjectural Technologies | |
B) | Impossible Industries | |
C) | The yields will be equal | |
D) | Venture Industries |
Question 43
Which of the following is true?
A) | Yield curves typically slope upward | |
B) | The interest rates on bonds of differing maturities tend to move together | |
C) | The interest rates on bonds of differing risks tend to move together | |
D) | All of the above |
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