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Question
Examine the securities below and identify the security with the highest liquidity premium, the highest default risk premium, and the highest maturity premium.a. 30-year U.S. Government Treasury bond maturing in 2025
b. 25-year Bbb-rated corporate bond maturing in 2030, actively traded on the New York Exchange
c. 10-year Aaa-rated corporate bond maturing in 2020, thinly traded on a regional exchange
d. 3-month U.S. Treasury bill
Answer
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