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Question 15 (2 points) Hi-Tech Appliances and Comfy Mattress Co. recently raised bonds with the following characteristics: Company Time to Maturity Par Value Coupon Rate

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Question 15 (2 points) Hi-Tech Appliances and Comfy Mattress Co. recently raised bonds with the following characteristics: Company Time to Maturity Par Value Coupon Rate Bond Rating Hi-Tech Appliances 10 years $1,000 4% AA Comfy Mattress Co. 10 years $1,000 6% BBB Which of the following may explain the difference in yields? Select all that apply. Higher default risk for Comfy Mattress Co. than Hi-Tech Appliances. Differences in expected inflation. Higher beta for Comfy Mattress Co. than Hi-Tech Appliances. Higher maturity risk for Comfy Mattress Co, than Hi-Tech Appliances. Previous Page Next Page Page 15 of 31

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