Corporate bonds are not as liquid as government bonds because
A) fewer bonds for any one corporation are traded, making them more costly to sell.
B) the corporate bond rating must be calculated each time they are traded.
C) corporate bonds are not callable.
D) all of the above.
E) only A and B of the above.

Question

Quizplus · Accepted Answer

Corporate bonds are generally less liquid than government bonds because there are fewer of them traded, which can make them more costly to sell. Corporate bond ratings do not need to be recalculated each time they are traded, and the callability of a bond does not directly affect its liquidity.

Corporate Bonds Are Not as Liquid as Government Bonds Because