Assume That You Observe the Following Rates on Long-Term Bonds

question 55

Multiple Choice

Assume that you observe the following rates on long-term bonds: U.S. Treasury bonds = 4.15 percent AAA Corporate bonds = 6.2 percent BBB
The main reason for the differences in the interest rates is:

• A) maturity risk premium
• B) inflation premium
• C) default risk premium
• D) convertibility premium

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Definitions:

Weak Cultures

Refers to organizational cultures that have loosely defined values and norms, resulting in less uniformity in employee behavior and potentially affecting consistency and performance.

Adaptive Culture

An organizational culture that is flexible, responsive, and able to change in alignment with external conditions or demands.

Organizational Culture

embodies the shared beliefs, values, norms, and practices that guide the behavior of people within an organization, shaping its social and psychological environment.

Opportunity Seeking

The proactive behavior of identifying and pursuing potential advantages or profitable situations, especially in a business context.