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Assume that interest rates on 3-year Tesla AA and 3-year Tesla A corporate bonds are as follows: AA = 4.72% Tesla A = 5.04% Tesla

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Assume that interest rates on 3-year Tesla AA and 3-year Tesla A corporate bonds are as follows: AA = 4.72% Tesla A = 5.04% Tesla bond is traded on the exchange. The difference in these rates were probably caused primarily by: (1) Liquidity premium; (2) Default risk premium; (3) Maturity risk premium; (4) Inflation premium (1) d None of (1), (2), (3) or (4) (3) (4)

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