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Multiple Choice Quiz
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1
Investment grade bonds consist of only those bonds with Triple A ratings.
A)True
B)False
2
The higher a bond's rating the higher its default risk.
A)True
B)False
3
In the United States the interest income from bonds issued by one government is not taxed by another government, although the issuing government may tax it.
A)True
B)False
4
A bond's inflation risk increases with its time to maturity.
A)True
B)False
5
An inverted yield curve is a predictor of a general economic slowdown.
A)True
B)False





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