Examine the Securities Below and Identify the Security with the Highest

question 69

Essay

Examine the securities below and identify the security with the highest liquidity premium,the highest default risk premium,and the highest maturity premium.
a.30-year U.S.Government Treasury bond maturing in 2025
b.25-year Bbb-rated corporate bond maturing in 2030,actively traded on the New York Exchange
c.10-year Aaa-rated corporate bond maturing in 2020,thinly traded on a regional exchange
d.3-month U.S.Treasury bill

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Definitions:

Ordinal Scale

A measurement scale that categorizes variables based upon their order or rank, without specifying the exact differences between ranks.

Direction of Difference

Describes whether the relationship between variables indicates a positive or negative association in statistical analysis.

Research Hypothesis

A specific, testable prediction about the expected outcome of a study or experiment.

Statistically Significant

A measure that indicates the likelihood that a result from data collected and analyzed in a study is not due to chance.