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In 2012, Anheuser-Busch In Bev NY, maker of Budweiser and other beer, sold debt of varying maturities. According to an article in the Wall Street Journal: "The three-year notes priced with a risk premium of 0.5 percentage point over comparable Treasury; the five-year notes at a spread of 0.8 percentage point to Treasury, the 10-year notes at 1.05 percentage points over Treasury".

1) What does the article mean by "comparable" Treasury?

2) What does the article mean by a "risk premium"?

3) Why does the risk premium increase the longer the maturity off Anheuser-Busch's debt?

Financial Management, Finance

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