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QUESTION 9 Which statement is correct? The higher the probability of default, the lower the yield to maturity will be Short-term bonds have lower reinvestment
QUESTION 9 Which statement is correct? The higher the probability of default, the lower the yield to maturity will be Short-term bonds have lower reinvestment rate risk than long-term bonds Long-term bonds have more interest rate risk than short-term bonds OAll else equal, if a bond s yield to maturity increases, its price will increase OIf a coupon rate exceeds its bond s yield to maturity, the bond will sll at a discount over par bond will sell at a discount over par QUESTION 10 Which of the following is true: yield curve indicates that yields on long-term bonds are higher than yields on short-term bonds O None of these An inverted yield curve is historically a sign of imminent recession. An inverted yield curve is not possible O An inverted yield curve is historically a sign that the economy is expected to improve
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