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Consider the following information on bonds and answer the question that follows. Maturity Bond A B. D Issuer Government of Canada Government of Canada Canada
Consider the following information on bonds and answer the question that follows. Maturity Bond A B. D Issuer Government of Canada Government of Canada Canada Housing Trust Royal Bank of Canada Rating AAA AAA AAA A Coupon 7% 6% 7% 8% Yield 7.42% 7.90% 7.77% 7.87% 10 years 30 years 10 years 5 years The yield on the Canada Housing Trust Bond exceeds the yield on a Government of Canada 10-year Bond because of (Select the best choice below.) A. Inflation risk. OB. Credit or Default Risk. O C. Maturity risk. D. Liquidity risk
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