The T-bill rate is 3.25%. The 10-year T-bond is 4.83%. The 30-year T-bond is 5.95%.

The 10-year AAA bond is 5.34%. The 30-year AAA bond is 6.86%.

The 10-year BB bond is 8.77%. The 30-year BB bond is 9.47%.

What is the additional maturity risk premium for long-term, high quality corporate bonds?

2.70%

1.52%

1.12%

0.91%

Which of the following is true?

		inflation increases the time value of money
		competitive markets allow all firms to earn economic profits
		diversification increases risk
		the marginal tax rate is more important than the average tax rate