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can you please help me understand this question? A 10-year US Treasury bond trades at a yield of 4%, while a 2-year US Treasury bond
can you please help me understand this question?
- A 10-year US Treasury bond trades at a yield of 4%, while a 2-year US Treasury bond trades at a yield of 1.8%. What would be the primary cause of the yield difference between the two bonds?
- A.Default-risk premium
- B.Interest-rate risk premium
- C.Liquidity premium
- D.Government bond premium
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Practical Financial Management
Authors: William R. Lasher
7th edition
128560721X, 9781133593669, 1133593682, 9781285607214, 978-1133593683
