Assume that interest rates on 20-year Treasury and corporate bonds are as follows: T-bond = 7.72% AAA = 8.72%

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answerhappygod
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Assume that interest rates on 20-year Treasury and corporate bonds are as follows: T-bond = 7.72% AAA = 8.72%

Post by answerhappygod »

Assume that interest rates on 20-year Treasury and corporatebonds are as follows:
T-bond = 7.72% AAA = 8.72% A = 9.64% BBB = 10.18%The differences in these rates were probably caused primarilyby:
Select one:
a.
Tax effects.
b.
Default and liquidity risk differences.
c.
Maturity risk differences.
d.
Inflation differences.
e.
Real risk-free rate differences.
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