Three Factors Explain the Risk Structure of Interest Rates

question 85

Multiple Choice

Three factors explain the risk structure of interest rates

• A)liquidity,default risk,and the income tax treatment of a security.
• B)maturity,default risk,and the income tax treatment of a security.
• C)maturity,liquidity,and the income tax treatment of a security.
• D)maturity,default risk,and the liquidity of a security.

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Definitions:

Trachea

The windpipe; a large membranous tube reinforced by rings of cartilage, extending from the larynx to the bronchial tubes and conveying air to and from the lungs.

Windpipe

Another term for the trachea, the large airway that leads from the throat (pharynx) to the lungs, allowing for air passage.

Nasal Cavity

A large air-filled space above and behind the nose in the middle of the face, part of the respiratory system, which filters, warms, and moistens air breathed in through the nose.

Larynx

An organ located in the neck of mammals that is involved in breathing, sound production, and protecting the trachea against food aspiration.