The Following Yields on 20-Year Bonds Were Quoted Recently

question 106

Multiple Choice

The following yields on 20-year bonds were quoted recently: The difference in yields is due primarily to:

• A) maturity risk premium.
• B) default risk premium.
• C) seniority risk premium.
• D) financial risk premium.

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Definitions:

Downslope Marine

Describes processes or movements occurring towards the bottom of the ocean slope, often involving sediment transport from shallower to deeper waters.

Physical Weathering

The mechanical breakdown of rocks and minerals into smaller pieces by physical forces without changing their composition.

Oxidation

The chemical process during which a material combines with oxygen.

Frost Wedging

Process by which jointed rock is pried and dislodged by the expansion of ice during freezing.