Two of the Primary Differences Between a Corporate Bond and a Treasury

question 36

Multiple Choice

Two of the primary differences between a corporate bond and a Treasury bond with identical maturity dates are related to

• A)interest rate risk and time value of money.
• B)time value of money and inflation.
• C)taxes and potential default.
• D)taxes and inflation.
• E)inflation and interest rate risk.

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Definitions:

Psychographics

The study of personality, values, opinions, attitudes, interests, and lifestyles to analyze consumer behavior.

Consumer Lifestyles

The habits, attitudes, tastes, moral standards, economic levels, and the amount of consumption by an individual or group.

Ideals

Standards or models of perfection and excellence that individuals or societies strive to achieve.

Principles

Fundamental truths or propositions that serve as the foundation for a system of belief or behavior or for a chain of reasoning.