The market for fixed-interest TCorp bonds would be just as effective as the Treasury bond market in performing the price discovery function for long-term interest rates.

Question

Quizplus · Accepted Answer

The market for TCorp bonds, while it may contribute to the price discovery process, is not as broad or liquid as the Treasury bond market. Treasury bonds are considered the benchmark for long-term interest rates due to their risk-free nature and the vast size of the market, which allows for more efficient price discovery.

The Market for Fixed-Interest TCorp Bonds Would Be Just as Effective