Respuesta :
Corporate bonds generate higher rates of return than U.S. Treasury bonds.This statement is true
Explanation:
Corporate bonds are the bonds that are issued by the corporation.Whereas the US treasury bonds are issued by the US government.The US treasury bond offer taxation benefit to its purchasers whereas no such benefit is provided by a corporate bond.
Corporate bonds are the bonds that are considered to be risky in comparison to the bonds issued by the government and that is the main reason why they have greater rate of return than then goverment bonds
So we can say that .Corporate bonds generate higher rates of return than U.S. Treasury bonds.This statement is true
Rates of return on corporate bonds are higher than those on US Treasury bonds. This statement is true.
Although all corporate bonds have some level of default risk (no matter how minor), the market uses US Treasury bonds as a benchmark since they have 0% default risk.
About Corporate bonds:
- The bonds issued by a corporation are known as corporate bonds.
- The US Treasury bonds, on the other hand, are issued by the US government.
- A corporate bond does not provide any tax benefits to its purchasers, whereas a US treasury bond does.
- Corporate bonds are bonds that are regarded riskier than government bonds, which is why they have a higher rate of return than government bonds.
As a result, we can say. Rates of return on corporate bonds are higher than those on US Treasury bonds. This statement is correct.
For more information about Corporate bonds refer to the link:
https://brainly.com/question/8753083
