Multiple Choice
The default-risk premium:
A) should vary directly with the bond's yield and inversely with its price.
B) is less than 0 (zero) for a U.S. Treasury bond.
C) should be lower for a highly speculative bond than for an investment-grade bond.
D) should vary directly with the bond's yield and the bond's price.
Correct Answer:
Verified
Correct Answer:
Verified
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