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10 Jan

premium is that portion of the bond yield that represents compensation

by jagguarpaw On: Finance - 0 Comment

 

Question: The ___ premium is that portion of the bond yield…

 

The ___ premium is that portion of the bond yield that represents compensation for potential difficulties that might be encountered should the bond holder wish to sell the bond prior to maturity.

 

A) Taxability

 

B) Liquidity

 

C) Default Risk

 

D) Inflation

 

E) Interest Rate Risk

 

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