Mathematics
Mathematics, 21.01.2020 06:31, masontdavis

Assume that interest rates on 20-year treasury and corporate bonds with different ratings, all of which are noncallable, are as follows:

t-bond = 7.72%
a = 9.64%
aaa = 8.72%
bbb = 10.18%

the differences in rates among these issues were most probably caused primarily by:

answer

a. real risk-free rate differences.
b. tax effects.
c. default risk differences.
d. maturity risk differences.
e. inflation differences.

answer
Answers: 1

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Assume that interest rates on 20-year treasury and corporate bonds with different ratings, all of wh...

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