Which of the Following Statements Is True

question 67

Multiple Choice

Which of the following statements is true?

• A)Treasury bonds have zero default risk.
• B)The longer the maturity of a bond, the less risky it is.
• C)The real risk-free rate incorporates an inflation premium.
• D)Liquidity premium is included only for highly liquid securities.
• E)The default risk is greater for AAA-rated corporate bonds than for BBB-rated bonds with the same features.

---

Definitions:

Diploid

An organism or cell with two sets of chromosomes, one from each parent, typical of most animals and plants, symbolized as 2n.

Slime Molds

Eukaryotic organisms that exhibit traits of fungi and protozoa, often found in moist, decaying forest matter.

Septate Hyphae

Hyphae with cross-walls or septa that divide the filamentous structures into separate cell-like compartments, common in many fungi.

Mycelium

Tangled mass of hyphal filaments composing the vegetative body of a fungus.