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

90.2K

Verified Solution

Question

Finance

image
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: Real risk-free rate differences. Inflation differences O None of them Maturity risk differences Default and liquidity risk differences

Answer & Explanation Solved by verified expert
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

Other questions asked by students