Bond investors will experience capital gains when

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1. Unsaved For portfolio analysis purposes, ex post returns and standard deviations are commonly used even though a primary interest is in the ex ante data. Question 9 options:

a) True

b) False

2. Suppose that on your 21st birthday you are given a $1,000,000 trust fund. If you can earn 4% in annual compound interest, how much money can you withdraw each year to ensure that if there is money in the account forever?

$25,000.00 $31,280.11 $40,000.00 $47,619.05 None of these

3. Bond investors will experience capital gains when?

market interest rates are high and rising.

market interest rates are high and falling.

the required rate of return exceeds the risk-free rate of return.

more bonds are called than issued over a given period of time.

Reference no: EM132059185

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