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The required rate of return on a bond is inversely related to a bond's risk and coupon. less than the E ( r ) for
The required rate of return on a bond is
inversely related to a bond's risk and coupon.
less than the for discount bonds and greater than the for premium bonds.
the interest rate that equates the current market price of the bond with the present
value of all future cash flows received.
equivalent to the current yield for nonpar bonds.
None of these choices are correct.
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