An analyst needs a proxy for the risk-free rate and turns to the yield on:
ATreasury notes
BTrade credit
CCorporate paper
DBank overdrafts
Answer & Solution
Correct answer: A. Treasury notes
1. Government issues are used.
2. The ten-year note is the example.
3. It is US Treasury notes.
_Source: OpenStax Principles of Finance 2e, Chapter 17, How Firms Raise Capital._
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