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Question
In a recent year, interest rates on long-term government and corporate bonds were as follows:
T-bond = 7.72% A = 9.64%
AAA = 8.72% BBB = 18%
The differences in rates among these issues were caused primarily by
a. Tax effects.
b. Default risk differences.
c. Maturity risk differences.
d. Inflation differences.
e. Answers b and d are both correct.
Answer
This answer is hidden. It contains 1 characters.
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