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Which one of the following would be the most appropriate discount rate for an investment deemed to have moderate risk?

Yield on U.S. Treasury obligations.
Yield on investment grade bonds.
Projected return on S&P 500 equities.
Projected return on global equities.

Correct - Your answer is correct.

Wrong - Your answer is wrong.

Detailed Answer

Answer (B) is correct. Investment grade bonds are considered safe investments and thus have the lowest yield.

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