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Why are equity investment returns typically more than bond returns?
A) Equities are riskier than bonds
B) Bonds are riskier than equities
C) Bonds pay interest payments
D) Both A & C
A $5,000 face value industrial bond can be purchased for $4,920. Its interest rate is 8% and it pays interest semi annually and will mature in eight years. What is the effective rate of return on the bond? What is the effective rate of return that th..
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