Which of the following is NOT a characteristic affecting the yields on debt securities?
A)credit (default)risk
B)liquidity
C)tax status
D)term to maturity
E)All of these are correct and affect yields on debt securities.

Question

Quizplus · Accepted Answer

All the options listed (credit risk, liquidity, tax status, and term to maturity) are factors that affect the yields on debt securities. Credit risk pertains to the likelihood of default by the issuer, affecting the interest rate they must offer. Liquidity refers to how easily a security can be bought or sold in the market without affecting its price. Tax status can influence the after-tax return to investors, making some securities more attractive than others. Term to maturity impacts the yield due to the time value of money and changing interest rates over time.

Which of the Following Is NOT a Characteristic Affecting the Yields