Question: Question 4 When borrow rate and lending rate differ, can the price be uniquely determined by the No - Arbitrage principle? Yes. No - arbitrage

Question 4
When borrow rate and lending rate differ, can the price be uniquely determined by the No-Arbitrage principle?
Yes. No-arbitrage principle can uniquely determine the price.
No. It needs to be determined by external factors such as supply and demand in the market.
1 point
5.
Question 5
Fixed-income instruments are based on interest rates and are generally considered 'safe investment'. However, are they really risk-free?
Yes. They are risk-free.
No. They are exposed to certain risks.
1 point
6.
Question 6
If a bond has high yield to maturity, what does it imply about the quality of the bond?
High quality.
Low quality.

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