can you please help me understand this question? A 10-year US Treasury bond trades at a yield
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can you please help me understand this question?
- A 10-year US Treasury bond trades at a yield of 4%, while a 2-year US Treasury bond trades at a yield of 1.8%. What would be the primary cause of the yield difference between the two bonds?
- A.Default-risk premium
- B.Interest-rate risk premium
- C.Liquidity premium
- D.Government bond premium
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