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Treasury Bills currently yield 2.4% and Treasury bonds currently yield 2.7%. Calculate the difference and explain the reason using terms/concepts from the chapter. Difference in

Treasury Bills currently yield 2.4% and Treasury bonds currently yield 2.7%. Calculate the difference and explain the reason using terms/concepts from the chapter.

Difference in yield? ____________

Why?___________________________________________________

Corporate (commercial) paper currently yields 3% and corporate bonds currently yield 4.2%. Calculate the difference and explain the reason.

Difference in yield? ____________

Why?___________________________________________________

Compare Treasury bonds and Corporate bonds. What's the difference in yield?

Why?__________________________________________________________________

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