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The Reason for a Difference in the Yield Between a Aaa

question 153

True/False

The reason for a difference in the yield between a Aaa corporate bond and an otherwise identical Baa bond is the risk premium; other things being equal.


Definitions:

-edema

A suffix referring to a condition characterized by an excess of watery fluid collecting in the cavities or tissues of the body.

Pertaining

Relating or referring to; concerning.

Four

The number following three and preceding five, represented in numerals as 4.

Quadra-

A prefix meaning four or fourfold, used to describe quantities or units.

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