Rated bond issue of the same maturity

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Reference no: EM132064561

You are a financial consultant. At various times you heard the following comments on interest rates from one of your clients. How would you respond to each comment?

(a) “A double A rated bond issue should offer a lower yield than a single A rated bond issue of the same maturity.”

(b) “If there is an increase in the money supply, the level of interest rates must decrease.”

Reference no: EM132064561

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