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Assume that interest rates on 20-year Treasury and corporate bonds are as follows: T-bond-7.72% AAA 8.72% A-9.64% BBB 10.18% The differences in these rates were
Assume that interest rates on 20-year Treasury and corporate bonds are as follows: T-bond-7.72% AAA 8.72% A-9.64% BBB 10.18% The differences in these rates were probably caused primarily by: Oa. Default and liquidity risk differences. b. Real risk-free rate differences c. Maturity risk differences d. Tax effects. e. Inflation differences. Question 45 of 55
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