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Government bond price and a corporate bond price

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Reference no: EM132392745

Consider the following statements:

  • Statement A: Changing prices in primary bond trades gives rise to interest rate risk.
  • Statement B: A difference between a government bond price and a corporate bond price is created when the corporate entity defaults.

Which of the statements given above is correct?

Select one:

Only statement A

Neither statement A nor B

Only statement B

Both statement A and B

Reference no: EM132392745

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