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jaspinder kaur jaspinder kaur
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Why are the interest rates of U.S. Treasury notes less than the interest rates of equivalent corporate bonds?

▸

U.S. Treasury securities are widely regarded to be risk-free.



▸ There is significant risk that the U.S. government will default.

▸ U.S. Treasury securities are generally used to determine interest rates.

▸ The U.S. government has a high credit spread.
Textbook 
Fundamentals of Corporate Finance

Fundamentals of Corporate Finance


Edition: 2nd
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lindslinds
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