In 20XX, the 10-Year Treasury Rate Was 4

question 24

Multiple Choice

In 20XX, the 10-year Treasury rate was 4.5 percent while the average 10-year Aaa corporate bond debt carried an interest rate of 6.0 percent. What is the average default risk premium on Aaa corporate bonds?

• A) 0.75 percent
• B) 1.5 percent
• C) 1.95 percent
• D) 2.25 percent

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Definitions:

Stress

A physical, mental, or emotional factor that causes bodily or mental tension and may be a factor in disease causation.

Increase

The act or process of becoming larger or more in quantity, size, degree, or amount.

Stressors

External pressures or events that cause stress, challenging an individual's ability to cope or adapt effectively.

Stress

The physical or emotional response to external pressures or demands, which can affect an individual's mental and physical well-being.