The following table contains selected interest rate data from FREDopens in a new tab$*$ for September of $2023.$

$*$Real$-$time data provided by Federal Reserve Economic Data$($FRED$),$ Federal Reserve Bank of Saint Louis.

Interest Rate

Value

$$Moody$\text{'}$s Seasoned Aaa Corporate Bond Yield

$5\mathrm{.}13\%$

$$Moody$\text{'}$s Seasoned Baa Corporate Bond Yield

$6\mathrm{.}16\%$

$3-$Month Treasury Bill Secondary Market Rate

$5\mathrm{.}32\%$

$10-$Year Treasury Constant Maturity Rate

$4\mathrm{.}38\%$

Part $3$

Do the magnitudes of these interest rates conform to what economic theory would$$ predict? $($Check all that$$ apply.$)$

A$.$

No$.$ Since$$ Aaa$-$rated corporate bonds are the highest quality$$ bonds, they should also have the highest interest rate.

B$.$

No$.$ Since$3-$month T$-$bills are the most secure$$ investment, they should have the highest interest rate.

C$.$

No$.$ Corporate bonds should always have higher interest rates than U$.$S$.$ Treasury bonds because they always have some risk of$$ default, whereas U$.$S$.$ Treasury bonds have little to no risk of default.

D$.$

Yes. Since$$ Baa$-$rated corporate bonds have the highest default$$ risk, they also have the highest interest rate.