Question: Select the correct statement. A bond is a type of financial security that represents a loan to the firm by an investor: it is a

 Select the correct statement. A bond is a type of financial

Select the correct statement. A bond is a type of financial security that represents a loan to the firm by an investor: it is a legal obligation - the firm must pay the investor. All else being equal, an increase in interest rates will increase stock prices. Historically, the yield curve slopes downward. A bond's rating reflects its inflation risk

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