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12. Risks of Investing in bonds ools The higher the risk of a security, the higher its expected return will be. A band's risk level
12. Risks of Investing in bonds ools The higher the risk of a security, the higher its expected return will be. A band's risk level is reflected in its yield, but understanding the different involved when Investing in bonds is important. The following graph shows the relationship between interest rates and maturity for three security classes: U.S. Treasury securities (USTS), AA-ratec corporate bonds, and BBB-rated corporate bonds. Use the dropdown menus to label each security's profile correctly: YIELD IN ips 15 ips 12 9 . 3 0 5 10 15 20 25 30 YEARS TO MATURITY B 3 0 5 10 15 20 25 30 YEARS TO MATURITY 111 Is the default spread between the corporate bonds and the Treasury securities greater for shorter or longer maturities? Short-term maturities Long-term maturities
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