Question: This is the difference between the interest rate on a US Treasury bond and a corporate bond of the same profile that is , the
This is the difference between the interest rate on a US Treasury bond and a corporate bond of the same profilethat is the same maturity and marketability.This is the premium that reflects the risk associated with changes in interest rates for a longterm security.This is the rate on a Treasury bill or a Treasury bond.This is the premium added to the riskfree rate that reflects the average sustained increase in the general level of prices for goods and services expected over the securitys entire life.This is the rate for a shortterm riskless security when inflation is expected to be zero.It is based on the bonds marketability and trading frequency; the less frequently the security is traded, the higher the premium added, thus increasing the interest rate.
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