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The Blue Hole Company situated in west New Providence, Nassau has just issued a series of bonds with 5 - through 1 0 - year
The Blue Hole Company situated in west New Providence, Nassau has just issued a series of bonds with through year maturities. The company's default risk is on year bonds, and grows by for each year that's added to the bond's term. Blue Hole's liquidity risk is on year bonds, and grows by for each additional year of term. Maturity risk on all bonds is on year bonds, and grows by for each additional year of term. What is the difference between the interest rates on Blue Hole's bonds and those on federal government bonds of like terms? points
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