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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 10-year, 3% U.S. government zero coupon bond (which is priced to yield 4%) to a 10-year, 3% coupon bond issued by the Aerocar Motor Co.(which is priced to yield 5%). The difference between the two yields is due to:
maturity premium
II. default premium
III. liquidity premium
I only
II and HI
II only
III only
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