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If Investors Are Uncertain That They Will Be Able to Sell

Question 37

Multiple Choice

If investors are uncertain that they will be able to sell a corporate bond quickly, the investors will demand a higher yield in the form of a(n) _________________.


A) Inflation premium.
B) Interest rate risk premium.
C) Default risk premium.
D) Liquidity risk premium.
E) Increased real rate of interest.

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