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    Money and Capital Markets
  4. Exam
    Exam 8: The Risk Structure of Interest Rates: Defaults, Prepayments, Taxes, and Other Rate-Determining Factors
  5. Question
    The Expectation in the Financial Marketplace of a Significant Decline
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The Expectation in the Financial Marketplace of a Significant Decline

Question 22

Question 22

True/False

The expectation in the financial marketplace of a significant decline in market interest rates should increase the differential between required rates of interest on new callable and non-callable bonds.

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