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The Bond Horizon Premium Is

Question 13

Multiple Choice

The bond horizon premium is:


A) the difference between the rates on long-term government bonds and the same maturity corporate bonds.
B) the difference between the rates on long-term government bonds and a risk-free rate.
C) the difference between rates on long-term corporate bonds and a risk-free rate.
D) the difference in returns on the longest maturity government bond and the shortest maturity risk-free rate bond.

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