Which Two of the Following Factors Cause the Yields on a Corporate

question 74

Multiple Choice

Which two of the following factors cause the yields on a corporate bond to differ from those on a comparable Treasury security?
I.inflation risk
II.interest rate risk
III.taxability
IV.default risk

• A)I and II only
• B)III and IV only
• C)I, II, and IV only
• D)II, III, and IV only
• E)I, II, III, and IV

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Definitions:

Elated

Feeling or expressing great happiness or triumph.

Instinctive Processes

Innate, biologically determined behaviors that organisms are born with, which do not require learning.

Programmed

The state of having been designed or set up according to a predetermined plan or set of instructions, often used in the context of machinery, computers, or behavioral interventions.

Cellular Modification Theory

A hypothesis in neuroscience suggesting that changes in brain cells' structure or function underpin learning and memory.