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Which of the following statement is correct? The most important investors in corporate bonds are individual investors. Bonds that sell at prices below par are
Which of the following statement is correct?
The most important investors in corporate bonds are individual investors.
Bonds that sell at prices below par are called premium bonds.
The value, or price, of any asset, including bonds, is the future value of its future cash flows.
All the answers are correct.
Long-term bonds carry substantially more interest rate risk than short-term bonds.
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