The risky interest rate is than the risk-free rate because the .
A) greater; risk premium is positive
B) greater; risk premium is negative
C) less; inflation rate is positive
D) greater; risk premium is zero
Correct Answer:
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Q19: In the United States, the interest rate
Q20: A bond's maturity is 3 years, with
Q21: A change in interest rates has effect
Q22: New information about a firm has:
A)little effect
Q23: Which of the following summarizes the classical
Q25: The risk premium is the:
A)excess interest rate
Q26: The primary reason for changes in bond
Q27: Which of the following summarizes the classical
Q28: Stock prices change frequently because:
A)the economy is
Q29: In present value terms, a risky future
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