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The higher the risk of a security, the higher its expected return will be . A bond's risk level is reflected in its yield, but
The higher the risk of a security, the higher its expected return will be A bond's risk level is reflected in its yield, but understanding the different risks
involved when investing in bonds is important.
The following graph shows the relationship between interest rates and maturity for three security classes: US Treasury securities USTs AArated
corporate bonds, and BBBrated corporate bonds. Use the selection dropdown lists to correctly associate each curve with its corresponding security
class:
A
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