The factors that affect the yield spread between a non-Treasury security and a comparable Treasury security are:
A) The type of issuer.
B) The issuer's perceived creditworthiness.
C) The maturity of the instrument.
D) The expected liquidity of the issue.
E) All of the above.

Question

Quizplus · Accepted Answer

The yield spread between a non-Treasury security and a comparable Treasury security is influenced by various factors including the type of issuer, the issuer's perceived creditworthiness, the maturity of the instrument, and the expected liquidity of the issue. These factors collectively impact the risk premium investors demand over the risk-free rate offered by Treasury securities.

The Factors That Affect the Yield Spread Between a Non-Treasury