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Interest rates on a 20 year treasury and corporate bonds with different ratings as follows:
T-bonds: 6.32%. A: 8.46%
AAA: 7.79%. BBB: 9.28%
The differences in rates among these issues were most probably caused by
A- real risk-free rate differences
B- default and liquidity risk differences
C- inflation differences
D- maturity risk differences
E- tax effects
Dec 04 2019 View more View Less
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