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Answer dividends interest depreciation none of the above A premium on a security

ID: 2705719 • Letter: A

Question

Answer

dividends interest depreciation none of the above




A premium on a security if that security cannot be converted to cash on short notice and at close to its "fair market value" is a(n) _____. Answer normal premium liquidity premium maturity risk premium reinvestment rate risk



The risk that a decline in interest rates will lead to lower income when funds are reinvested is a(n) _____. Answer A.  interest rate premium B.  liquidity premium C.  variable risk premium D.  reinvestment rate risk




When long-term interest rates are higher than short-term interest rates, the yield curve is said to be _____. Answer inverted humped normal rather strange




Factors affecting the cost of money include _____. Answer A.  risk B.  inflation C.  the moon's gravitational pull all of the above both A. and B.

Explanation / Answer

1.interest

2.maturity risk premium

3.D. reinvestment rate risk

4.inverted

5.


A. risk