What does the article mean by comparable treasury

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Reference no: EM131706370

Bev NY, maker of Budweiser and other beers, sold debt of varying maturities. According to an article in the Wall Street Journal.

Assumptions: The three-year notes priced with a risk premium of 0.50 percentage point over comparable Treasury; the five-year notes at a spread of 0.80 percentage point to Treasury, the 10-year notes at 1.05 percentage points over Treasury.

[Q1] What does the article mean by "comparable" Treasury?

[Q2] What does the article mean by a "risk premium"?

[Q3] Why does the risk premium increase the longer the maturity of Anheuser-Busch debt? Please Explain!

Reference no: EM131706370

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