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Management · Q557

Financial Management

Graduate and Post Graduate · Management · question 557

Q557

A premium charged by lenders for securities that cannot be converted into cash is classified as

A.
required premium
B.
liquidity premium
C.
marketability premium
D.
Both B and C
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
A premium charged by lenders for securities that cannot be converted into cash is classified as liquidity premium and marketability premium.