There are four major factors accounting for the existence of yield differentials. Which of the following is NOT a factor?
A) segments
B) sectors
C) indentures
D) coupons
E) maturities

Question

Quizplus · Accepted Answer

The four major factors accounting for the existence of yield differentials are segments (i.e. corporate, government, municipal), sectors (i.e. technology, healthcare, energy), coupons (i.e. interest payments), and maturities (i.e. length of time until the bond's principal is repaid). Indentures are legal contracts that outline the terms of the bond issue and are not a factor that affects yield differentials.

There Are Four Major Factors Accounting for the Existence of Yield