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The Figure Below Shows the Supply and Demand for Bonds

Question 15

Multiple Choice

The figure below shows the supply and demand for bonds for Charter Corp. (SC and DC) and US Treasury Securities (SUS and DUS) . The default risk premium paid by Charter Corp. in this market is represented by  
The figure below shows the supply and demand for bonds for Charter Corp. (S<sub>C</sub> and D<sub>C</sub>) and US Treasury Securities (S<sub>US</sub> and D<sub>US</sub>) . The default risk premium paid by Charter Corp. in this market is represented by   A) P<sub>US</sub>0. B) P<sub>C</sub>0. C) P<sub>US</sub>P<sub>C.</sub> D) P<sub>C</sub>a.


A) PUS0.
B) PC0.
C) PUSPC.
D) PCa.

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