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Which of the following statements is most correct? Inflation premium compensates investors for past inflation levels Default risk premium can be negative for AAA-rated bonds

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Which of the following statements is most correct? Inflation premium compensates investors for past inflation levels Default risk premium can be negative for AAA-rated bonds Maturity risk premium is lower for long-term mortgage loans as opposed to that for short-term mortgage loans Liquidity premium corrects the interest rates on risk financial investments for the fact that the investments cannot be converted to cash on short notice at close to the original costs

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