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- which one is correct please confirm? QUESTION 27 The term structure of interest rates is related to the ____ risk premium. a. seniority b. marketability c. default d. maturity1. What is the relationship between interest rate level and bond price? Why must this relationship be true? How has the current rate environment impacted the prices of bonds?5. What is the difference between a general obligation bond and a revenue bond and what the difference means in terms of risk to an investor?
- What effect do interest rates have on bond prices? What are the essential assumptions behind bond valuation?Question 47: Match each financial function to its best description. PMT PV Table FV Calculates the value of a bond at a later date Calculates the required payment for a bond Calculates the current value of a bondA3) Finance What is the commonly used Excel model for bond valuation?