Nongovernmental Issues Typically Have Slightly Higher Yields Than Government Issues

question 291

Multiple Choice

Nongovernmental issues typically have slightly higher yields than government issues with similar maturities because ________.

• A) they experience little or no loss in value over time
• B) of the slightly higher risk associated with them
• C) the yields are guaranteed by the federal government
• D) of having stronger secondary market

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Definitions:

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A state in strategic interactions where each participant's chosen strategy leaves them with no incentive to deviate, given the choices of others.

Cournot Model

A economic model describing an industry structure in which companies compete on the quantity of output they decide to produce, assuming their rivals' decisions are fixed.