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True or false for the following 1.Generally, the higher the yield a bond offers, the higher its risk of default. 2.A stock is valued at
True or false for the following
1.Generally, the higher the yield a bond offers, the higher its risk of default.
2.A stock is valued at the present value of the dividends but not the future sale price received by the investor, according to the Valuation Principle.
3.Given yield to maturity is dependent on the face value of a bond, bond traders will quote bond yields not bond prices.
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