Why is there a differences in the rates

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Question: At the present time, 10 year Treasury bonds are yielding 5.0%, where as investment grade corporate bonds (BBB rated-10 year) are paying 7%, please answer the following:

1. Why is there a differences in the rates? Please advise in financial terms and concepts. The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM132048599

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