Pfp ch16 Study guides, Class notes & Summaries
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Exam (elaborations) - University of arkansas econ 101 pfp chapter 16 exam review test answered 100% correct
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As bond maturity increases, the bond's risk: A. Increases. B. Decreases. C. Does not change. D. Sometimes increases and sometimes decreases. E. Is inversely related to the value of the bond. 2. The relationship that exists between bond maturity and risk can be explained through observing that: A. The longer the period, the greater the potential for a change in the ability of a company to repay its debt. B. A broad-based change in interest rates will have a greater effect on long-term b...
