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An Investor Who Bought Money-Market Securities at a Yield of 5.50

Question 58

Multiple Choice

An investor who bought money-market securities at a yield of 5.50% p.a.and sold the parcel a few weeks later at a yield of 5.85% p.a.would earn:


A) interest
B) a capital loss
C) a capital gain
D) interest and a capital loss
E) interest and a capital gain.

Correct Answer:

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