Question: answer The yield curve is the spread between the interest rates on bonds with default risk and those of the default-free bonds when both types

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answer The \\yield curve is the spread between
The \\yield curve is the spread between the interest rates on bonds with default risk and those of the default-free bonds when both types of bonds have the same maturity. The following three characteristics of a bond are collectively embedded in the risk structure of interest rates except liquidity. difference in maturity. income tax treatment. Go 9 BD > risk of default

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