Question: Choose the correct statement about the discount rate to be used when valuing bonds. a. All else equal, the lower the bond rating the higher

Choose the correct statement about the discount rate to be used

Choose the correct statement about the discount rate to be used when valuing bonds. a. All else equal, the lower the bond rating the higher the discount rate that should be used. b. All else equal, we should expect a higher discount rate when inflation is expected to be high over the life of the bond. c. When the discount rate goes up, the value of the bond should go down. d. All the above

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