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Author Question: Five years ago Rogue Construction Inc. issued 20-year maturity fixed-rate bonds at par with a 10 ... (Read 26 times)

armygirl

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on: Jul 11, 2018
Five years ago Rogue Construction Inc. issued 20-year maturity fixed-rate bonds at par with a 10 coupon rate. Today those same bonds carry a 14 yield to maturity. Which of the following statements about this bond issue could be TRUE?
 
  A) Since issue, the economy-wide rate of inflation has increased.
  B) The market believes there is greater risk associated with this bond than at the issue date.
  C) Both A and B may be true.
  D) Neither A nor B could be true.

Question 2

Shares of an open-end fund are typically purchased through stockbrokers, while closed-end fund shares are typically purchased directly from the fund.
 
  Indicate whether the statement is true or false


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anoriega3

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

C

Answer to Question 2

FALSE


armygirl

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Reply 2 on: Jul 11, 2018
Great answer, keep it coming :)

31809pancho

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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