Top Posters
Since Sunday
1
a
1
Home Q & A Board Other Fields Homework Help Business Finance
New Topic  
jaspinder kaur jaspinder kaur
wrote...
Go to Answer
Posts: 509
Rep: 11 0
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 150 times
1 Reply
Replies
Answer verified by a subject expert
lindslinds
wrote...
#1
Posts: 386
Rep: 56 0
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

jaspinder kaur Author
wrote...

5 years ago
Brilliant ツ
kater28
wrote...

Yesterday
This site is awesome
novae
wrote...

2 hours ago
You make an excellent tutor!
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  921 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 1207
  
 502
  
 739
Your Opinion
Which is the best fuel for late night cramming?
Votes: 165
Previous poll results: Do you trust social media networks with protecting your privacy?