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Hello, I'm having trouble figuring this out. Can you help me? Assume that interest rates on 30-year Treasury and corporate bonds with different ratings, all
Hello, I'm having trouble figuring this out. Can you help me?
Assume that interest rates on 30-year Treasury and corporate bonds with different ratings, all of which are non-callable, are as follows:
Treasury bond: 7.72%
Corporate bond (AA rating): 8.72%
Corporate bond (A rating): 9.64%
Corporate bond (BBB rating): 10.18%
The differences in interest rates among these issues were most probably caused primarily by _______.
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