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Assume That You Observe the Following Rates on Long-Term Bonds

question 47

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Assume that you observe the following rates on long-term bonds: U.S. Treasury bonds = 4.15%
AAA Corporate bonds = 6.2%
BBB Corporate bonds = 7.15%
The main reason for the differences in the interest rates is:


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Antitrust Violation

An offense under laws intended to protect trade and commerce from abusive practices such as monopoly, restraint of trade, and unfair business practices.

Social Media Site

A website or platform that enables users to create and share content or participate in social networking.

Per Se Violation

An action that is inherently illegal and does not require further proof of harm or anticompetitive effects to be considered a breach of law.

Sherman Act

A foundational U.S. antitrust law enacted in 1890 to prevent monopolies and promote competition among businesses.

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