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QUESTION
15) Which of the following statement is TRUE?
15) Which of the following statement is TRUE?
A) as bond ratings go from AAA to AA to A, the return that investors requires goes down.
B) The Fisher Effect illustrates the inverse relationship between inflation and nominal interest rates.
C) The penalty for spending for spending begore earning describes the interest rate from the point of view of the debtor.
D) Ceteris paribus, the EAR is inversely related to the frequency of compounding.
