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Yield spreads for a corporate security, for example, are driven by the following factors: a) The Liquidity Premium that exists for corporate bonds versus risk-free

Yield spreads for a corporate security, for example, are driven by the following factors:

a) The Liquidity Premium that exists for corporate bonds versus risk-free Treasury securities.

b) The Credit Spread that is offered to entice investors to purchase a corporate over a riskfree Treasury.

c) Both

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