Question
What is true about liquidity risk? a. The bond with greater bid-ask spread has lower liquidity risk. b. Credit ratings measure liquidity risk of the
What is true about liquidity risk?
a. The bond with greater bid-ask spread has lower liquidity risk.
b. Credit ratings measure liquidity risk of the bond.
c. Investors buy the bond at the bid price.
d. The bond with lower trading volume has greater liquidity risk.
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Corporate Financial Management
Authors: Douglas R. Emery, John D. Finnerty, John D. Stowe
4th Edition
1935938002, 9781935938002
