Which of the following is true of risk premium?
A) T-bills have a have a higher risk premium than that of Treasury bonds.
B) The government bonds have a higher risk premium than that of corporate bonds.
C) The speculative corporate issues have a lower risk premium than that of the higher rated corporate issues.
D) The lower-rated corporate issues have a higher risk premium than that of the higher rated corporate issues.
Correct Answer:
Verified
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