The yields on 10-year corporate bonds (with different ratings) and 10 year Treasury bonds are...

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Finance

The yields on 10-year corporate bonds (with different ratings) and 10 year Treasury bonds are as follows: 10-year Corporate bond (AAA) = 2.72% 10-year Corporate bond (A )= 3.64% 10-year Corporate bond (BBB) = 4.18% 10-year Treasury-bond = 1.72% The differences in these rates were probably caused primarily by:

None of them.

Real risk-free rate differences.

Default and liquidity risk differences.

Maturity risk differences.

Inflation differences.

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