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Differences in rates among issues

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1. Assume that interest rates on 20-year Treasury and corporate bonds with different ratings, all of which are noncallable, are as follows:

T-bond = 7.72%

A = 9.64%

AAA = 8.72%

BBB = 10.18%

The differences in rates among these issues were most probably caused primarily by

Reference no: EM132060209

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