The Difference Between the Yield on Local Government Bonds and the Yield

question 45

Multiple Choice

The difference between the yield on local government bonds and the yield on corresponding domestic government treasury bonds is known as

• A)sovereign spread.
• B)the foreign discount rate.
• C)interest expense.
• D)the risk free rate.
• E)interest rate risk.

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Definitions:

Shakyamuni

Another name for Siddhartha Gautama, the historical Buddha and founder of Buddhism, who lived in the 6th to 4th century BCE.

Amitabha

A principal Buddha in Mahayana Buddhism, associated with pure land teachings and known for his promise to welcome all beings into his realm of Sukhavati.

Handscroll

In Asian art, a horizontal painted scroll that is unrolled right to left, section by section, and often used to present illustrated religious texts or landscapes.

Gu Kaizhi

Gu Kaizhi was a celebrated Chinese painter of the Eastern Jin dynasty, known for his detailed portraits and works on silk, contributing significantly to the development of Chinese painting.