A corporate bond that yields 12 percent includes a risk-free rate of 7 percent and a default risk premium of 3 percent. The bond's maturity risk premium is _____.

A. 1 percent
B. 10 percent
C. 4 percent
D. 2 percent
E. 6 percent


Answer: D

Business

You might also like to view...

Many companies are ________ project work to contractors and consultants as a means of dealing with the peaks and valleys of resource allocation among projects.

Fill in the blank(s) with the appropriate word(s).

Business

Days' sales in inventory is calculated as:

A. Ending inventory divided by cost of goods sold times 365. B. Ending inventory times cost of goods sold. C. Cost of goods sold divided by ending inventory times 365. D. Ending inventory divided by cost of goods sold. E. Cost of goods sold divided by ending inventory.

Business

When the U.S. government determined the prices of solar panels imported from China were artificially low due to illegal subsidies, it imposed a ________ to help domestic firms compete.

A. quota B. countertrade exchange C. currency exchange rate D. tariff E. comparative inflation rate

Business

Explain why career planning is necessary.

What will be an ideal response?

Business