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A Corporate Bond Carries a Promised Yield of 14 Percent

Question 85

Multiple Choice

A corporate bond carries a promised yield of 14 percent and an expected yield of 11 percent. The bond's anticipated loss (to the nearest whole percentage point) is:


A) 25 percent.
B) 12 percent.
C) 6 percent.
D) 4 percent.
E) 3 percent.
F) None of the above.

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