Assume that interest rates on 2 0 - ycar I'reasury and corporate bonds are as follows:T -

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Assume that interest rates on

20 -

ycar I'reasury and corporate bonds are as follows:T

-

bond

= 7.72 %

AAA

= 8.72 %

= 9.64 %

pop

= 10.187

the dit crences in these rates were probably caused onmanly by:a

.

Detault and liquidity risk differencesb. Maturity risk differences. C

.

Tax effects. d

.

Real risk

-

free rate differencesc. Inflation dificrences.

Posted Date: May 18, 2024 05:13 PM

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Assume that interest rates on 2 0 - ycar I'reasury and corporate bonds are as follows:T -

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