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Principles of Finance

Review Questions

Principles of FinanceReview Questions
Search for key terms or text.
1 .
What is a junk bond?
2 .
Briefly describe interest income within the context of bond investments.
3 .
Briefly describe the two types of cash flow that a bondholder will receive from the issuer.
4 .
What is an inverted yield curve, and what is its significance?
5 .
Describe reinvestment risk for a bondholder.
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