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    Financial Markets and Institutions Study Set 7
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    Exam 8: Bond Valuation and Risk
  5. Question
    An Increase in Either the Risk-Free Rate or the General
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An Increase in Either the Risk-Free Rate or the General

Question 50

Question 50

True/False

An increase in either the risk-free rate or the general level of the risk premium on bonds results in a higher required rate of return and therefore causes bond prices to increase. ​

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