What Is the Likely Cause of an Interest Rate Spread

Multiple Choice

What is the likely cause of an interest rate spread for similar assets denominated in the same currency?

A) There is doubt that the currency's value will hold.
B) It is due to the country risk where the assets are originated.
C) It depends on the geographic difference between borrowers and lenders.
D) It is because in some markets, the middlemen "take" more of a cut.