Interest Rates Charged on Loans Tend to Be Higher for Corporations

Multiple Choice

Interest rates charged on loans tend to be higher for corporations than for the U.S.government because:

A) corporations borrow in illiquid money markets unlike the government.
B) the cost of administering the loan is greater for the government than for a corporation.
C) the tax rate on corporate bonds is higher than on government bonds.
D) loans to the government are always for shorter time periods than loans to corporations.