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  3. Study Set
    Money Banking
  4. Exam
    Exam 7: The Risk and Term Structure of Interest Rates
  5. Question
    The Risk Spread Is
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The Risk Spread Is

Question 3

Question 3

Multiple Choice

The risk spread is:


A) the difference between a bond's purchase price and selling price.
B) the difference between the bond's yield and the yield on a U.S. Treasury bond of the same maturity.
C) less than 0 (zero) for a U.S. Treasury bond.
D) assigned by a bond-rating agency.

Correct Answer:

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