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    Money Banking and Financial Markets Study Set 2
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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 28

Question 28

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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