The two primary factors that affect interest rates on debt, Financial Management

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The two primary factors that affect interest rates on debt

1. The two primary factors that affect interest rates on debt securities are risk and inflation. Explain the role of each factor.

2. How can the expected return on a portfolio be manipulated to minimize the risk on that portfolio?

3. What is the advantage of financial leverage, the degree to which a firm or individual utilizes borrowed money to make money?

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Financial Management: The two primary factors that affect interest rates on debt

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Financial Management: The two primary factors that affect interest rates on debt

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