CORPORATE FINANCE
CORPORATE FINANCE
12th Edition
ISBN: 9781307702804
Author: Ross
Publisher: MCG/CREATE
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Chapter 8, Problem 2CQ
Summary Introduction

To determine: The bond with which greater interest rate risk is associated.

Treasury Bonds:

Treasury bonds are those government bonds that have a fixed interest rate and they are traded in the market. These are securities of a maturity period of more than 10 years.

BB Corporate bonds:

These bonds are the bonds that are issued by a corporation. As these bonds have a risk factor associated with them, they pay higher rates than the government or the municipal bonds.

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Chapter 8 Solutions

CORPORATE FINANCE

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