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QUESTION 25 Which of the following has the most default risk? O a. 30-year Treasury bond. O b. GNMA. C. XYZ Small Cap Corpora
QUESTION 26 Assume that the 1-year rate is 4% and the 2-year rate is 6%. Based on the expectations theory, what is the implie
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Answer #1

25.

Option D is correct

Central City Municipal General Obligation Fund - BBB+ rated

As this bond has low rating

26.

1 year forward rate 1 year from today = (1.06)2/(1.04) - 1

1 year forward rate 1 year from today = 8%

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