Question: Explain why corporate bonds always trade at higher yields than Treasury bonds and why BBB-rated bonds always trade at higher yields than otherwise similar AA-rated

Explain why corporate bonds always trade at higher yields than Treasury bonds and why BBB-rated bonds always trade at higher yields than otherwise similar AA-rated bonds.

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Corporate Bonds vs Treasury Bonds 1 Credit Risk Corporate bonds are issued by private companies and they carry credit risk which is the risk of the is... View full answer

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