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stranahan stranahan
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7 years ago
Which of the statements below is FALSE?
A) The maturity premium represents that portion of the yield that compensates the investor for the additional waiting time or the lender for the additional time it takes to receive repayment in full.
B) The longer the loan, the greater the risk of nonpayment and the lower the interest rate the lender demands.
C) The difference in rates as the borrowing time or investment horizon increases is due to the maturity premium of the investments.
D) If you invest money for a short period and buy a six-month CD, you will not receive as high an interest rate as if you bought a CD with a longer maturity period.
Textbook 
Financial Management: Core Concepts

Financial Management: Core Concepts


Edition: 2nd
Author:
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crackerspoppycrackerspoppy
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7 years ago
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stranahan Author
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#2
7 years ago
Thanks Smiling Face with Open Mouth and Tightly-closed Eyes
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