Question: 3 1 Multiple Cholce 1 . 6 6 7 points Suppose that a small, rural city in the countryside of North Dakota plans to issue

31

Multiple Cholce

1.667

points

Suppose that a small, rural city in the countryside of North Dakota plans to issue

5150.000

worth of

10 -

year bonds. Which one of the following components of the bond's yield will be affected by the fact that no active secondary market is expected for these bonds?

Taxability premium

Interest rate risk premium

Liquidity premium

Inflation premium

Real rate

Clear my selection

3 1 Multiple Cholce 1 . 6 6 7 points Suppose that

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