question 23 A Moving to another question will save this response. Question 23 Th

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question 23

A Moving to another question will save this response. Question 23 The interest rates on corporate and on 10-year Treasury bonds are as follows (all corporate bonds have also 10-year maturity T-Bond 6.66% AA 7.77% A 8.88% BB 9.99% As you can see, the bonds above offer different interest rates, the differences were caused by what? o A. Liquidity and default risk differences o B. Inflation differences o C. World Market Investment (WMI) differences o D. Leasing differences o E. r differences

Explanation / Answer

Therefore, the correct answer is option A. Liquidity and default risk differences. Low interest rates bonds are T bonds have interest rate is 6.66% and high interest rate bonds are BB have 9.99%.

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