Index understates the investors actual realized return

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Reference no: EM13895531

True or false

1. A US$ corporate bond can never have a yield lower than a US government bond with the same maturity.

2. If interest rates rise a 10-year zero coupon bond would fall by about half as much as a 5-year zero coupon bond.

3. The capital appreciation on the Nikkei 225 index understates the investor’s actual realized return.

Reference no: EM13895531

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