Which factor(s) lead to the difference of the interest between T-bill and a short-term corporate bond? Group of answer choices Inflation rate Maturity risk Default risk and maturity risk Default risk

The T-bill is the debt instrument used by the government to raise capital. It has a maturity of one year or less and is backed by the Treasury Department, which is why they are considered risk-free instruments.

The short-term corporate bond is a debt instrument provided by private companies to raise capital. They have a maturity ranging from one year to three years. They are considered riskier as they are backed by the assets of the companies.