Use the Information for the Question(s)below

question 85

Multiple Choice

Use the information for the question(s) below.
-Why are the interest rates of U.S.Treasury notes less than the interest rates of equivalent corporate bonds?

• A)The U.S.government has a high credit spread.
• B)There is significant risk that the U.S.government will default.
• C)U.S.Treasury securities are widely regarded to be risk-free.
• D)U.S.Treasury securities are generally used to determine interest rates.

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Definitions:

Compound Leaves

Leaves that are divided into multiple leaflets, all attached to a single stem, as opposed to single, undivided leaves.

Pines

Type of conifer trees belonging to the genus Pinus, known for needle-like leaves and production of cones containing seeds.

Firs

A genus of evergreen coniferous trees belonging to the family Pinaceae, known for their needle-like leaves and their role as popular Christmas trees.

Gymnosperm Phyla

A group of seed-producing plants that includes conifers and cycads, characterized by seeds that are not enclosed within an ovary.