Which of the following statements is correct?
A) The default risk premium of Baa 20-year corporate bonds over Aaa 20-year corporate bonds does not vary.
B) The market segmentation theory assumes that borrowers and investors do not want to shift from one maturity sector to another without an interest rate premium.
C) Real interest rates are the rates that are quoted in the news.
D) All of these statements are correct.
Correct Answer:
Verified
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