The cost of financing the government deficit

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Reference no: EM131322252

1. In the article S&P Downgrades Debt Rating of US for the First Time, the authors discussed S&P downgrading US debt. Assuming the financial markets believe that the S&P's downgrade is warranted. Then the diengeade will ____ the cost of financing the government deficit

A. Increase

B. Not change

C. Decrease

D. Not impact

2. The market required rate of return on a bond that is held for its entire life is called

A. Dirty yield

B. Call premium

C. Coupon rate

D. Current yield

E. yield to maturity

Reference no: EM131322252

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