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Which of the following statements is CORRECT? The following represents a possibly reasonable formula for the maturity risk premium on bonds: MRP =0.1t(t), where t

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Which of the following statements is CORRECT? The following represents a "possibly reasonable" formula for the maturity risk premium on bonds: MRP =0.1t(t), where t is the yearn to maturity. The yield on a 10 -year MAN-rated corporate bond should always exceed the yleld on a 5-year AAh-rated corporate bond. The yield on a 3-year corporate bond ahould always exceed the yield of a 2-year eorporate bond. The yleld on a 2-year corporate bond shouzd alwayn axceed the yield on a 2-year Treasury bond. The yield on a 3-yeer 7rnanury bond cannot exceed the yield on a 10-year Treaaury. bond

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