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Which of the following is true for risk premium? a The BB-rated corporate bonds have a higher risk premium than that of the AA-rated corporate

Which of the following is true for risk premium?

a

The BB-rated corporate bonds have a higher risk premium than that of the AA-rated corporate bonds.

b

The investment grade bonds have a higher risk premium than that of the junk bonds.

c

10-year Treasury bonds have a higher risk premium than that of 10-year corporate bonds.

d

3-month Treasury bills have a higher risk premium than that of 10-year Treasury bonds

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