Assume That Interest Rates on 15-Year Noncallable Treasury and Corporate $\begin{array} { l l } \text { T-6and =7.72\% }& \mathbf { A } = 9.64 \%\\\mathrm { AAA } = 8.72 \% & \mathrm { BBB } = 10.19 \% \end{array}$

question 9

Multiple Choice

Assume that interest rates on 15-year noncallable Treasury and corporate bonds with different ratings are as follows:
$\begin{array} { l l } \text { T-6and =7.72\% }& \mathbf { A } = 9.64 \%\\\mathrm { AAA } = 8.72 \% & \mathrm { BBB } = 10.19 \% \end{array}$
The differences in rates among these issues were most probably caused primarily by:

• A) tax effects.
• B) default risk differences.
• C) maturity risk differences.
• D) inflation differences.
• E) real risk-free rate differences.

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Definitions:

Democratic Leadership

A leadership style in which members of a group take a more participative role in the decision-making process.

Power And Authority

The capacity to influence or direct people's behavior and the legitimate right to make decisions and enforce obedience.

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The degree to which employees are able to participate in decision-making processes and contribute ideas within an organization.

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Leaders who possess a magnetic personality and charm, inspiring devotion and enthusiasm in others.