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Consider the following information on bonds and answer the question that follows. Bond Issuer Maturity A B Government of Canada Government of Canada Canada Housing
Consider the following information on bonds and answer the question that follows. Bond Issuer Maturity A B 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 D The yield on the Canada Housing Trust Bond exceeds the yield on a Government of Canada 10-year Bond because of ( A. Inflation risk. B. Maturity risk. C. Liquidity risk. D. Credit or Default Risk
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