In a period of deflation, which of the following statements about fixed income securities are TRUE?
I Issuers are more likely to sell fixed income securities
II Issuers are likely to sell non-callable issues
III Holders are likely to realize capital appreciation on fixed income securities that are not close to maturity
IV Holders receive payments on fixed income securities that buy more in real terms
Answer:
I Issuers are more likely to sell fixed income securities
II Issuers are likely to sell non-callable issues
III Holders are likely to realize capital appreciation on fixed income securities that are not close to maturity
IV Holders receive payments on fixed income securities that buy more in real terms