What is the difference between the corporate paper rate and the corporate bond rate?
A) The corporate paper rate refers to interest rates paid on high-quality corporate bonds of relatively short duration (up to 6 months) .
B) The corporate paper rate refers to interest rates paid on high-quality corporate bonds of relatively long duration (typically 20 years) .
C) The corporate bond rate refers to interest rates paid on long-term (typically 20 year) corporate bonds that may represent varying quality or risk.
D) A and B are correct.
E) A and C are correct.
Correct Answer:
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