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A commercial paper with a ten year maturity pays an annual interest rate of 7%, while a U.S. government bond with the same maturity pays 5%.What could account for the difference?

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MCQs on the importance of money, banking, and financial markets of a developed economy.


A commercial paper with a ten year maturity pays an annual interest rate of 7%, while a U.S. government bond with the same maturity pays 5%.What could account for the difference?





 
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