Question: The required return on the bond is likely to differ from the stated interest rate because economic conditions have changed, causing a shift in the
The required return on the bond is likely to differ from the stated interest rate because
| economic conditions have changed, causing a shift in the basic cost of long-term funds and the firm's risk has changed.
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| only B and C. | ||
| inflation risk premium is changed due to inflationary pressure in the economy.
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| the international business environment is not favorable. |
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