Assume That Interest Rates on 20-Year Treasury and Corporate Bonds $\text { T-bond } = 7.72 \% \quad \text { AAA } = 8.72 \% \quad \text { A } = 9.64 \% \quad \text { BBB } = 10.18 \%$

Multiple Choice

Assume that interest rates on 20-year Treasury and corporate bonds are as follows:
$\text { T-bond } = 7.72 \% \quad \text { AAA } = 8.72 \% \quad \text { A } = 9.64 \% \quad \text { BBB } = 10.18 \%$
The differences in these rates were probably caused primarily by:

A) Tax effects.
B) Default and liquidity risk differences.
C) Maturity risk differences.
D) Inflation differences.
E) Real risk-free rate differences.