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If the Bond yield is higher than the inflation rate the redemption value won't be recovered the redemption value will be higher than the bond's face value the redemption value will normally be equal to the bond's face value the redemption value will be less than the bond's face value

If the Bond yield is higher than the inflation rate the redemption value won't be recovered the redemption value will be higher than the bond's face value the redemption value will normally be equal to the bond's face value the redemption value will be less than the bond's face value

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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nswer ? and why second option is not true? if it is not the answer

If the Bond yield is higher than the inflation rate the redemption value won't be recovered the redemption value will be higher than the bond's face value O the redemption value will normally be equal to the bond's face value the redemption value will be less than the bond's face value
Transcribed Image Text:If the Bond yield is higher than the inflation rate the redemption value won't be recovered the redemption value will be higher than the bond's face value O the redemption value will normally be equal to the bond's face value the redemption value will be less than the bond's face value
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