Question: 2.) The premium in a bond return is an extra return that compensates investors who are buying such bond for the inability to easily

2.) The premium in a bond return is an extra return that

compensates investors who are buying such bond for the inability to easily

2.) The premium in a bond return is an extra return that compensates investors who are buying such bond for the inability to easily resell it prior to its time to maturity. a. Default risk b. Taxability C. Liquidity d. Inflation e. Interest rate risk

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