Which of the following statements is right? Group of answer choices a)Ignoring the liquidity risk, the 10-treasry bond should have the same interest rate as the 10-year corporate bond. b)Ignoring the default risk, the 10-treasry bond should have the same interest rate as the 10-year corporate bond. c)The return of the 10-year treasury bond must be less than that of the 10-year corporate bond d)The return of the 10-year treasury bond must be greater than that of the 10-year corporate bond
Which of the following statements is right? Group of answer choices a)Ignoring the liquidity risk, the 10-treasry bond should have the same interest rate as the 10-year corporate bond. b)Ignoring the default risk, the 10-treasry bond should have the same interest rate as the 10-year corporate bond. c)The return of the 10-year treasury bond must be less than that of the 10-year corporate bond d)The return of the 10-year treasury bond must be greater than that of the 10-year corporate bond
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 11MC: When a bond sells at a discount, the carrying value ________ after each amortization entry. A....
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Which of the following statements is right?
Group of answer choices
a)Ignoring the liquidity risk, the 10-treasry bond should have the same interest rate as the 10-year corporate bond.
b)Ignoring the default risk, the 10-treasry bond should have the same interest rate as the 10-year corporate bond.
c)The return of the 10-year treasury bond must be less than that of the 10-year corporate bond
d)The return of the 10-year treasury bond must be greater than that of the 10-year corporate bond
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