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QUESTION 5 A bond that had a 20 year original maturity with 1 year left to maturity has more price risk than a 10 year
QUESTION 5 A bond that had a 20 year original maturity with 1 year left to maturity has more price risk than a 10 year original maturity bond with 1 year left to maturity. (assume that the bonds are non-callable, have equal coupon rates, and equal default risk) O True O False O All of the above None of the above QUESTION 6 Which of the following events would make it more likely that a company would call its outstanding callable bonds? Market interest rates decline sharply Market interest rates increase sharply . Inflation increases The bonds ratings are downgraded
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