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Author Question: In a severe recession, the major source of risk faced by investors who purchase junk bonds is (Read 36 times)

poopoo

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Question 1

Bond investors will experience capital gains when
◦ market interest rates are falling.
◦ market interest rates are rising.
◦ the required rate of return exceeds the risk-free rate of return.
◦ more bonds are called than issued over a given period of time.

Question 2

In a severe recession, the major source of risk faced by investors who purchase junk bonds is
◦ purchasing power risk.
◦ interest rate risk.
◦ liquidity risk.
◦ default risk.


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Marked as best answer by poopoo on Mar 29, 2022

ad2018

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poopoo

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Reply 2 on: Mar 29, 2022
YES! Correct, THANKS for helping me on my review


amit

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Reply 3 on: Yesterday
Excellent

 

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