Which of the Following May Be Said to Create a Debt

Multiple Choice

Which of the following may be said to create a debt market environment,whereby one company may obtain a comparative interest rate advantage over another company in the fixed interest rate market,compared with the floating interest rate market?

A) The existence of market segmentation between the fixed and floating rate markets.
B) Typically, fixed-rate market risk premiums are based on external credit rating agency reports.
C) Professional institutional lenders, such as banks and merchant banks, apply their own internal credit risk premiums.
D) All of the given answers.