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If There Is a Significant Risk That the Firm Will

Question 92

Multiple Choice

If there is a significant risk that the firm will default on its obligation,________ of the firm's debt,which is promised return,will ________ investors' expected return.


A) the risk level; overstate
B) the yield to maturity; understate
C) the risk level; understate
D) the yield to maturity; overstate

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