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    Exam 7: The Risk and Term Structure of Interest Rates
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    The Risk Premium That Investors Associate with a Bond Increases
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The Risk Premium That Investors Associate with a Bond Increases

Question 29

Question 29

Multiple Choice

The risk premium that investors associate with a bond increases with all of the following except:


A) maturity.
B) inflation risk increases.
C) interest-rate risk.
D) an improved bond rating.

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