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Use the following information for Q29 to Q31 Suppose Huron Corp. must make a $50 million pension payment every year for the n30. Now suppose Dominions intrinsic value is $21.00 today, what must be its growth rate! (based on information above) A. 0.020. Which of the following are false about the interest-rate sensitivity of bond 1) Bond prices and yields are inversely rela

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Answer #1

30. D 6%

20. D . The statement of interest rate is directly related to coupon rate is wrong . because coupon rate is constant .

rest all statement are correct .

1) when bond price increase yield will decrease

2) long term bond have high duration so it will shows high sensitivity towards interest rate

4) when bond price increase yield will decrease

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