Give brief answers to the following questions (no more than 5-10 lines per answer are...
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Finance
Give brief answers to the following questions (no more than 5-10 lines per answer are needed). Important: when illustrating your arguments, always support them by referring to the theories and models we have covered during the course. A. Why is a bond said to be trading at a premium when the yield is lower than the coupon rate? B. Explain intuitively how a manager could tweak the salvage value of machinery, to benefit from an expected reduction in the corporate tax rate taking place towards the end of an investment C. Explain how you could earn a positive return by following a momentum strategy. D. Given two stocks, one with a beta of 0.7 and one with a beta of 1.4, you can conclude that the second stock is twice as risky as the first one". Discuss whether this statement is correct
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