Assume that interest rates on 20 year Treasury and corporate bonds with different ratings, all of which are noncallable, are as follows:

T-bond = 7.72%


A= 9.64%

BBB 10.18%
The differences in rates among these issues were most probably caused primarily by

a. Real risk free rate differences

b. Tax effects

c. Default risk differences

d. Maturity risk differences

e. Inflation differences

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