The differences in these rates were probably caused, Financial Management

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The differences in these rates were probably caused

Assume that interest rates on 20-year Treasury and corporate bonds are as follows: T-bond = 7.72% AAA = 8.72% A = 9.64% BBB = 10.18% The differences in these rates were probably caused primarily by:

a. Real risk-free rate differences b. Maturity risk differences c. Tax effects d. Default risk differences e. Inflation differences

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