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Which of the following statement is CORRECT? a. The better the bond rating, the more default risk associated with the bond, the higher is the
Which of the following statement is CORRECT?
a. | The better the bond rating, the more default risk associated with the bond, the higher is the nominal interest rate. | |
b. | Real risk free is added to protect investors against loss of purchasing power for goods.
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c. | The higher inflation rate expected in the future, the lower is the nominal interest rate.
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d. | Maturity risk premiums are generally higher on short-term bonds than on long-term bonds | |
e. | Other things held constant, the more liquid is a bond, the lower is the nominal interest rate |
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