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In relation to an irredeemable security paying a fixed rate of interest, which of the foll

owing statements is correct?

A.As risk rises, the market value of the security will fall to ensure that investors receive an increased yield

B.As risk rises, the market value of the security will fall to ensure that investors receive a reduced yield

C.As risk rises, the market value of the security will rise to ensure that investors receive an increased yield

D.As risk rises, the market value of the security will rise to ensure that investors receive a reduced yield

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更多“In relation to an irredeemable…”相关的问题

第1题

Pop Co is switching from using mainly long-term fixed rate finance to fund its working capital to using mainly short-term variable rate finance.Which of the following statements about the change in Pop Co’s working capital financing policy is true?

A.Finance costs will increase

B.Re-financing risk will increase

C.Interest rate risk will decrease

D.Overcapitalisation risk will decrease

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第2题

In relation to an operating lease, which of the following statements is correct?

A.All the risks and rewards of ownership transfer to the lessee

B.The asset and lease obligation will be recorded in the statement of financial position

C.The lease period will cover almost all of the leased asset’s useful economic life

D.The lessor will be responsible for repairs and maintenance of the leased asset

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第3题

Which of the following financial instruments will NOT be traded on a money market?

A.Commercial paper

B.Convertible loan notes

C.Treasury bills

D.Certificates of deposit

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第4题

Which of the following are descriptions of basis risk?(1) It is the difference between the spot exchange rate and currency futures exchange rate(2) It is the possibility that the movements in the currency futures price and spot price will be different(3) It is the difference between fixed and floating interest rates(4) It is one of the reasons for an imperfect currency futures hedge

A.1 only

B.1 and 3

C.2 and 4 only

D.2, 3 and 4

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