The following figure shows the BAA corporate and 10-Year Treasury Bond yields. Refer to this figure when answering
Figure 14.1: BAA and 10-Year Bonds, 2006-2010
(Source: Federal Reserve Economic Data, St. Louis Federal Reserve)
-Consider Figure 14.1 above. The difference between these two curves can be interpreted as:

Question

The following figure shows the BAA corporate and 10-Year Treasury Bond yields. Refer to this figure when answering  
Figure 14.1: BAA and 10-Year Bonds, 2006-2010 
 (Source: Federal Reserve Economic Data, St. Louis Federal Reserve)
-Consider Figure 14.1 above. The difference between these two curves can be interpreted as:

Quizplus · Accepted Answer

The difference between two curves in a financial context often represents financial friction, which refers to the costs or barriers that prevent financial markets from functioning perfectly.

The Following Figure Shows the BAA Corporate and 10-Year Treasury