Top Posters
Since Sunday
y
2
m
2
m
2
u
2
m
2
B
2
M
2
e
2
k
2
N
2
y
2
m
2
New Topic  
jaspinder kaur jaspinder kaur
wrote...
Posts: 509
5 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 158 times
1 Reply
Replies
Answer verified by a subject expert
lindslinds
wrote...
Posts: 386
5 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...

5 years ago
Thank you, thank you, thank you!
wrote...

Yesterday
this is exactly what I needed
wrote...

2 hours ago
You make an excellent tutor!
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers
  536 People Browsing
Related Images
  
 286
  
 337
  
 571
Your Opinion
What's your favorite math subject?
Votes: 559

Previous poll results: How often do you eat-out per week?