The risk premium on corporate bonds reflects the fact that corporate bonds have a higher default risk and are ________ U.S. Treasury bonds.
A)less liquid than
B)less speculative than
C)tax-exempt unlike
D)lower-yielding than

Question

Quizplus · Accepted Answer

Corporate bonds are generally considered less liquid than U.S. Treasury bonds, which are backed by the full faith and credit of the U.S. government, making them one of the most liquid investments in the world. This liquidity difference is a key factor in the risk premium associated with corporate bonds.

The Risk Premium on Corporate Bonds Reflects the Fact That