The primary reason yields on corporate bonds generally are not the same (equal) is because the...

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The primary reason yields on corporate bonds generally are not the same (equal) is because the...

The primary reason yields on corporate bonds generally are not the same (equal) is because the ________ associated with each bond differs.

a. risk

b. real risk-free rate of return

c. inflation premium

d. nominal risk-free rate of return

business finance

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Answer 1

Answer #1

Risk of bonds depends on the riskiness of bond. If risk increase, bond yield will be high and vice-versa.

Hence, correct option is a. risk

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Answer 2

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Add Answer to: The primary reason yields on corporate bonds generally are not the same (equal) is because the...

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The primary reason yields on corporate bonds generally are not the same (equal) is because the...