Question: Compare the AAA spread for a short-term maturity (such as two years) versus a long-term maturity (such as 10 years). a. Is the spread larger

Compare the AAA spread for a short-term maturity (such as two years) versus a long-term maturity (such as 10 years).

a. Is the spread larger for the short-term or the long-term maturity?

b. Offer an explanation for this.

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