Differences in ________ explain why interest rates on Treasury securities are not all the same.
A)risk
B)liquidity
C)time to maturity
D)tax characteristics

Question

Quizplus · Accepted Answer

The time to maturity of Treasury securities will affect their interest rates. Typically, longer-term securities will have higher interest rates than shorter-term securities.

Answer: A, B, D
 Risk, liquidity, and tax characteristics can also impact the interest rates on Treasury securities. Securities with higher risk, less liquidity, or less favorable tax characteristics will generally have higher interest rates to compensate investors for the additional risk or inconvenience.

Differences in ________ Explain Why Interest Rates on Treasury Securities