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    Principles of Managerial Finance
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    Exam 6: Interest Rates and Bond Valuation
  5. Question
    The Reason for a Difference in the Yield Between a Aaa
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The Reason for a Difference in the Yield Between a Aaa

Question 153

Question 153

True/False

The reason for a difference in the yield between a Aaa corporate bond and an otherwise identical Baa bond is the risk premium; other things being equal.

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