Assume That the Treasury Bond Yield Today Is 2% Higher

question 72

Multiple Choice

Assume that the Treasury bond yield today is 2% higher than it was one year ago. Also assume that the credit (default) risk premium of an A-rated bond declined by 0.4% since one year ago. A newly issued A-rated bond will likely offer a yield today that is ____ the yield that was offered on an A-rated bond issued one year ago.

• A)greater than
• B)equal to
• C)less than
• D)A or B are both common

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Definitions:

Customer Relationship Management

A strategy for managing a company's interactions with current and potential customers, using data analysis about customers' history with the company to improve business relationships, particularly focusing on customer retention and ultimately driving sales growth.

Analyze Information

The process of examining data or information in order to draw conclusions, make predictions, or inform decisions.

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