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Author Question: In devising a cash management strategy, you should assume that future interest rates A) will ... (Read 46 times)

krzymel

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on: Jul 11, 2018
In devising a cash management strategy, you should assume that future interest rates
 
  A)
 
  will likely be volatile, but accurately forecasted.
  B)
 
  are not likely to change from the levels of present rates.
  C)
 
  will likely be volatile, and difficult to forecast.
  D)
 
  will occur in some random fashion.

Question 2

Which of the following premiums is NOT factored into the price of a long-term Treasury bond?
 
  A) an inflation-risk premium B) a maturity premium
  C) a real risk-free interest rate D) a default-risk premium
Foundations of Finance ¦ Keown, Petty, Martin ¦ 9th Edition
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kxciann

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Reply #1 on: Jul 11, 2018
Answer to Question 1

C

Answer to Question 2

D


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