Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. compare and contrast a 5-year aaa corporate bond w

Compare and contrast a 5-year AAA corporate bond with a 5-year Treasury Note. Which would typically...

60.1K

Verified Solution

Question

Finance

Compare and contrast a 5-year AAA corporate bond with a 5-yearTreasury Note. Which would typically offer a higher interest rate?Why? What risk affects both types of bonds?

Answer & Explanation Solved by verified expert
4.1 Ratings (808 Votes)
A year AAA corporate bond is different from a 5 year note in following ways 1 AAA bond is issued by corporates whereas treasury notes are issued by government 2 AAA bonds have higher rate of    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Compare and contrast a 5-year AAA corporate bond with a 5-yearTreasury Note. Which would typically offer a higher interest rate?Why? What risk affects both types of bonds?

Other questions asked by students

Physics
1.2K views

A person is driving his car on some road and suddenly a police car stops him...

General Management
1.2K views

Suppose we are interested in estimating the average number of customers in the supermarket. On average,...

Biology
1.2K views

3 DNA polymerase 1 is a protein involved in DNA replication A version of the...

Biology
1.2K views

Question 2 Points 3 Who was the founder of the Fruitlands O George Ripley O...

Biology
1.2K views

Each of the following is true about basal lamina except it underlies epithelial cells it...

Calculus
1.2K views

Test the series for convergence or divergence 00 n 2 In n n Extra Credit...

Accounting
1.2K views

On September 27, Guess receives payment in cash from Nordstrom for its order. (Answer from...

Accounting
1.2K views

Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for...

Accounting
1.2K views

3.4-16 (6) Joyce and Marvin run a day care for preschoolers. They are trying to...

Accounting
1.2K views

Your company sent a purchase order to Best Supplier Inc for 10 of Inventory Item...

Accounting
1.2K views

In order to encourage employee ownership of the companys $1 par common shares, Washington Distribution...

Accounting
1.2K views

Merrill Corp. has the following information available about a potential client. Please just...