Multiple Choice
Which of the following statements is true?
A) Treasury bonds have zero default risk.
B) The longer the maturity of a bond, the less risky it is.
C) The real risk-free rate incorporates an inflation premium.
D) Liquidity premium is included only for highly liquid securities.
E) The default risk is greater for AAA-rated corporate bonds than for BBB-rated bonds with the same features.
Correct Answer:
Verified
Correct Answer:
Verified
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