An aaa rated bond will provide a higher return than an aa, Financial Management

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An aaa rated bond will provide a higher return than an aa

Which of the following statements is true?

A) An AAA rated bond will provide a higher return than an AA rated bond

B) A bond with an A rating indicates a less risky investment than an AA rated bond

C) The return on a Government treasure bill can be used as a proxy for the risk free rate

D) Government bonds represent the highest risk of all

Please elaborate on the answer

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Financial Management: An aaa rated bond will provide a higher return than an aa

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