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You are comparing a 1 0 - year, 3 % U . S . government zero coupon bond ( which is priced to yield 4
You are comparing a year, US government zero coupon bond which is priced to yield to a year, coupon bond issued by the Aerocar Motor Cowhich is priced to yield The difference between the two yields is due to:
maturity premium
II default premium
III. liquidity premium
I only
II and
II only
III only
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