Top Posters
Since Sunday
New Topic  
jaspinder kaur jaspinder kaur
wrote...
Posts: 509
4 years ago
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
Authors:
Read 116 times
1 Reply
Replies
Answer verified by a subject expert
lindslinds
wrote...
Posts: 386
4 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

wrote...

4 years ago
This helped my grade so much Perfect
wrote...

Yesterday
Brilliant
wrote...

2 hours ago
Correct Slight Smile TY
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers
  1295 People Browsing
Related Images
  
 244
  
 294
  
 310
Your Opinion
Which 'study break' activity do you find most distracting?
Votes: 741