Question: Consider the following information on bonds and answer the question that follows. Bond Issuer Maturity A B Government of Canada Government of Canada Canada Housing

Consider the following information on bonds and answer the question that

Consider the following information on bonds and answer the question that follows. Bond Issuer Maturity A B Government of Canada Government of Canada Canada Housing Trust Royal Bank of Canada Rating AAA AAA AAA A Coupon 7% 6% 7% 8% Yield 7.42% 7.90% 7.77% 7.87% 10 years 30 years 10 years 5 years D The yield on the Canada Housing Trust Bond exceeds the yield on a Government of Canada 10-year Bond because of ( A. Inflation risk. B. Maturity risk. C. Liquidity risk. D. Credit or Default Risk

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