Question
Assume that interest rates on 20-year Treasury and corporate bonds are as follows: T-bond = 7.72% A = 9.64% AAA = 8.72% BBB = 10.18%
Assume that interest rates on 20-year Treasury and corporate bonds are as follows:
| T-bond | = 7.72% | A | = 9.64% | ||
| AAA | = 8.72% | BBB | = 10.18% | ||
The differences in rates among these issues were caused primarily by
tax effects? or default risk differences? or maturity risk differences? or inflation differences? or real risk-free rate differences?
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Fundamentals Of Health Care Financial Management
Authors: Steven Berger
4th Edition
1118801687, 978-1118801680
