"Moody's season Baa corporate bond minus federal funds rate". Explain why you can think of this series as the risk premium.

A) It represents the additional return investors demand for holding corporate bonds over risk-free assets.
B) The series reflects the compensation investors receive for bearing the risk of corporate bond defaults.
C) The difference between the two rates accounts for the uncertainty and credit risk associated with corporate bonds.
D) Investors require a higher yield on corporate bonds to compensate for the potential loss of principal compared to federal funds.