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The yield spread between a 5-year AA-rated corporate bond and a 5-year US Treasury bond may reflect differences in which of the following: Default risk

The yield spread between a 5-year AA-rated corporate bond and a 5-year US Treasury bond may reflect differences in which of the following:

  1. Default risk premiums
  2. Real risk-free rates
  3. Inflation risk premiums
  4. Liquidity risk premiums

Group of answer choices

II, III, and IV

I only

I, III, and IV

I and IV

I, IV, and V

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