Government bonds have lower yield to maturity than do corporate bonds of the same maturity because the ________ premium is lower for government bonds. A. interest rate risk B. inflation C. default

Which of the following statement is true? • Corporate bond yields are generally lower than government bond yields for bonds having the same coupon rate and maturity. • The spread of junk bond yields over that of Australian Government Bond is generally lower than the spread of investment-grade bonds over that of the Australian Government Bond. Once a bond defaults, bondholders can no longer receive any residual payment from the bond. • Two bonds have the same maturity, risk rating, and face value, but have different coupon rates. The bond with a lower coupon rate carries greater risks.

1. The yield curve is generally upward sloping. That is, interest rates on government bonds increase with the term to maturity of such bonds. Why? Occasionally, the yield curve is inverted. That is, interest rates on government bonds with longer terms to maturity are lower than the interest rates on government bonds with shorter terms to maturity. Why? Give answer from economics perspective in bullet points.

Everything else held constant, the interest rate on municipal bonds rises relative to theinterest rate on Treasury securities whenA) income tax rates are lowered.B) income tax rates are raised.C) municipal bonds become more widely traded.D) corporate bonds become riskier.

______________ is issued by corporations and typically has a higher yield compared to government securities?Treasury billsCommercial paperRepurchase agreementsNegotiable certificates of deposit

An increase in the riskiness of corporate bonds will ________ the yield on corporate bondsand ________ the yield on Treasury securities, everything else held constant.A) increase; increaseB) reduce; reduceC) increase; reduceD) reduce; increase