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Question 2 ( 2 points) Based on the Risk Structure of Interest rates, the following are correct statements, EXCEPT: Based on Risk of Default considerations,

image text in transcribed Question 2 ( 2 points) Based on the Risk Structure of Interest rates, the following are correct statements, EXCEPT: Based on Risk of Default considerations, AAA Bonds tend to offer a lower return than Baa Bonds Due to tax consideration, Federal Government bonds tend to offer a higher return than Municipal Bonds. Due to Liquidity considerations, Government Bonds tend to offer a lower return than Corporate Bonds. Due to Liquidity considerations, long term bonds tend to offer a Lower return than short term bonds

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