Question: c is right can you explain why for me please Assume that interest rates on 20-year Treasury and corporate bonds with different ratings, all of

c is right can you explain why for me please Assume

c is right can you explain why for me please

Assume that interest rates on 20-year Treasury and corporate bonds with different ratings, all of which are noncallable, are as follows: T-bond 7.7290 AAA 8. 72% A 9.64% BBB-10.18% The differences in rates among these issues were most probably caused primarily by: a. Real risk-free rate differences. b. Tax effects. c. Default and liquidity risk differences. d. Maturity risk differences. e. Inflation differences. Grossnickle Corporation issued 20-year, noncallable, 7.5% annual coupon bonds at their par value of $1,000 one year ago. Today, the market interest rate on these bonds is 6.2%. What is the current price of the bonds, given that they now have 19 years to maturity? a. $1,113.48

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