One reason why short- term Corporate yield curves are higher than that of short-term Treasury securities, is that short-term O Corporate securities have a maturity risk premlum. O Treasury securities have a lower maturity risk premlum than that of Corporate securities O Corporate securities have a hlgher maturity risk premium than that of Treasury securities O Treasury securities have no liquidity premlum. O Treasury securities have no maturity risk premium.

One reason why short- term Corporate yield curves are higher than that of short-term Treasury securities, is that short-term O Corporate securities have a maturity risk premlum. O Treasury securities have a lower maturity risk premlum than that of Corporate securities O Corporate securities have a hlgher maturity risk premium than that of Treasury securities O Treasury securities have no liquidity premlum. O Treasury securities have no maturity risk premium.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 21QTD

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Corporate bonds are riskier than US Treasury, so they pay default risk premium over what Treasury pays to stay competitive in the market. True False
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