Use the Figure Below for the Following Questions;it Shows the BAA

question 80

Multiple Choice

Use the figure below for the following questions;it shows the BAA corporate and 10-Year Treasury Bond yields.
-Consider Figure 14.1 above.The difference between these two curves can be interpreted as:

• A)the risk premium.
• B)inflation expectations.
• C)the risk-free rate.
• D)a market imperfection.
• E)the prime lending rate.

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