Use the figure below for the following questions;it shows the BAA corporate and 10-Year Treasury Bond yields.
-Consider Figure 14.1 above.The difference between these two curves can be interpreted as:
A)the risk premium.
B)inflation expectations.
C)the risk-free rate.
D)a market imperfection.
E)the prime lending rate.

Question

Use the figure below for the following questions;it shows the BAA corporate and 10-Year Treasury Bond yields. 
-Consider Figure 14.1 above.The difference between these two curves can be interpreted as:
A)the risk premium. 
B)inflation expectations. 
C)the risk-free rate. 
D)a market imperfection. 
E)the prime lending rate.

Quizplus · Accepted Answer

The Answer is A

Use the Figure Below for the Following Questions;it Shows the BAA