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ID: 2614090 • Letter: T

Question

tructure.com/courses/1323846/quizzes/1748642/take ????????? Yahoo ??????? : ????? ????? USE Question 11 5 pts 5 pts Assume that interest rates on 20-year Treasury and corporate bonds are as follows: AAA = 3.72% Treasury = 1.72% 5.18% A = 4.64% BBB = The differences in these rates were probably caused primarily by: Reinvestment rate risk differences. O Default and liquidity risk differences. O Maturity risk differences. Inflation differences. O Real risk-free rate differences. 5 pts D Question 12 20007@ 988

Explanation / Answer

Default and liquidity risk differences

Treasuries are one of the most traded invetments and are virtually default free as they are guarunteed by U.S government.