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

question 5

Multiple Choice

Use the figure below for the following questions;it shows the BAA corporate and 10-Year Treasury Bond yields.
-In Figure 14.1 above,the ten-year bond yield is considered __________,while the BAA bond yield represents ____.

• A)the federal funds rate;the risk premium
• B)the saving rate;the lending rate
• C)the risk premium,the prime lending rate
• D)a risk-free interest rate;a risky interest rate
• E)inflation;M1 money growth rate

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