Currently in the market, the three month Treasury bill has a rate of 3.10%.

The ten year Treasury note has a rate of 3.34%.

The thirty year Treasury bond has a rate of 4.06%.

The ten year AAA corporate bond has a rate of 3.77%.

The thirty year AAA corporate bond has a rate of 4.12%.

The ten year BBB corporate bond has a rate of 4.24%.

The thirty year BBB corporate bond has a rate of 4.86%.

What is the default risk for a long-term, high-quality corporate bond?

		0.74%
		0.35%
		1.02%
		0.06%

The inflation in Country JBK is expected to increase 4%. Assuming other things being equal, Country JBK's interest rates will ______________

		increase.
		decrease.
		stay the same.
		more information is needed to answer this question.