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In: Finance

A term spread is the difference between the rate on the 10 year treasury bond and...

A term spread is the difference between the rate on the 10 year treasury bond and a 30 year corporate bond

TRUE OR FALSE

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Expert Solution

The term Term Spread is used to compare and evaluate the Interest. It is the difference of the interest between different maturities od securities issued by different entities. It is also known as the slope of the bond yield curve.

So the statement in TRUE.

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jeff jeffy answered 2 years ago
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