In 2012, Anheuser-Busch In Bev NV, maker of Budweiser and other beers, sold debt of varying maturities.

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In 2012, Anheuser-Busch In Bev NV, maker of Budweiser and other beers, sold debt of varying maturities. According to an article in the Wall Street Journal:

The three-year notes priced with a risk premium of 0.50 percentage point over comparable Treasurys; the five-year notes at a spread of 0.80 percentage point to Treasurys; the 10-year notes at 1.05 percentage points over; and the 30-year bonds at a spread of 1.20 percentage points over Treasurys.

a. What does the article mean by “comparable Treasurys”?

b. What does the article mean by a “risk premium”?

c. Why does the risk premium increase the longer the maturity of Anheuser-Busch’s debt?

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