Business
Business, 04.04.2020 12:43, naeaamm2528

The interest rate charged to AAA corporate borrowers is 7.8% for 5 year bonds. The interest rate charged to BBB corporate borrowers is 8.8% for five year bonds. The onferences between these two rates of interest can best be explained by the following factors.

a. Inflation and Maturity Risk
b. Maturity Risk and Default Risk
c. Default Risk and Liquidity Risk
d. Liquidity Risk and Inflation me. Inflation and Default Risk

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Answers: 1

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The interest rate charged to AAA corporate borrowers is 7.8% for 5 year bonds. The interest rate cha...

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