The yields on 10-year corporate bonds (with different ratings) and 10 year Treasury bonds are...
70.2K
Verified Solution
Link Copied!
Question
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.
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!