Which of the following risk premiums apply to both corporate securities and federal government securities? a.Default...

Which of the following risk premiums apply to both corporate securities and federal government securities?

		a.Default risk only
		b.Liquidity risk only
		c.Maturity risk only
		d.Both default risk and liquidity risk
		e.Both liquidity risk and maturity risk

Expert Solution

Correct option is > c. Maturity risk only

Maturity risk premium relates to longer tenor which bears interest rate movement risk for both federal govt securities and corporate bonds.

jeff jeffy answered 3 years ago

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Which of the following risk premiums apply to both corporate securities and federal government securities? a.Default...

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Expert Solution

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