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:

Motivations

The underlying forces or reasons that drive individuals to engage in certain behaviors or pursue particular goals.

Needs

Internal states that drive action that is necessary to survive or thrive.

Primary Emotions

Fundamental emotions, such as joy, sadness, anger, and fear, that are universal and biologically based.

Pride

A feeling of self-respect and personal worth, often associated with achieving something significant.