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Question 2 5 A yield curve illustrates the relationship between the . default risk associated with bonds of a given maturity and the interest rate
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A yield curve illustrates the relationship between the
default risk associated with bonds of a given maturity and the interest rate they pay, at a
particular point of time
term to maturity of bonds and the interest rate they pay, at a particular point of time
marginal tax rate and the aftertax interest rate of return on taxable bonds
rate of inflation and the real rate of return on bonds
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