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An Often Overlooked Benefit of Debt Instruments Issued by Firms

Question 36

Multiple Choice

An often overlooked benefit of debt instruments issued by firms in emerging markets is that:


A) there is an active secondary market for the instruments,making them very liquid.
B) a country risk premium is often built into the yield on the debt instrument,increasing the yield above the yield available on other investments.
C) currency risk is not a consideration since the debt instruments are denominated in USD.
D) political risks are usually minimized by government guarantees of the instruments.

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