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Assume that interest rates on 15-year noncallable Treasury and corporate bonds with different ratings are as follows: T-bond = 7.72% A= 9:64% AAA = 8.72%

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Assume that interest rates on 15-year noncallable Treasury and corporate bonds with different ratings are as follows: T-bond = 7.72% A= 9:64% AAA = 8.72% BBB = 10.18% a) Inflation differences b) Real risk-free rate differences Oc) Tax effects d) Default risk differences e) Maturity risk differences

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