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Interest rates on a 20 year treasury and corporate bonds with different ratings as follows

Interest rates on a 20 year treasury and corporate bonds with different ratings as follows

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

Abhinav 04-Dec-2019

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