The relative illiquidity of corporate bonds is reflected in their having

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The higher bid-asked spreads reflect the relative illiquidity of corporate bonds compared to U.S. government securities, which have more active secondary markets. Option A is incorrect because, in general, corporate bonds have lower prices or yields than U.S. government securities, reflecting the higher risk associated with them. Option B is incorrect because the coupons on corporate bonds are typically higher than on U.S. government securities, reflecting the higher credit risk.

The Relative Illiquidity of Corporate Bonds Is Reflected in Their