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Question
Use the following interest rate data to answer the next seven questions.90-day Treasury bills 8.36 percent
180-day Treasury bills 8.48 percent
2-year Treasury notes 9.10 percent
3-year Treasury notes 9.25 percent
90-day Commercial paper 9.15 percent
3-year Corporate bonds (AA) 10.10 percent
3-year Municipal (AA) 7.07 percent
Expected 2-year inflation rate 3.50 percent
With reference to the data above, which security below did the market view as having the greatest default risk?
a. 90-day Treasury securities
b. 180-day Treasury securities
c. 2-year Treasury securities
d. 90-day Commercial paper
Answer
This answer is hidden. It contains 3 characters.
Related questions
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