CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

The yield on commercial paper is higher than that on short-term sovereign bonds of the same maturity. This is mainly because commercial paper has higher ______.

I. credit risk
II. liquidity risk
III. interest rate risk
A. I and II
B. II and III
C. I and III
Explanation: Trading is limited for commercial paper.

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