Chandler Co.'s 5-year bonds yield 7.00%, and 5-year T-bonds yield 5.15%. The real risk-free rate is r* = 3.0%, the inflation premium for 5-year bonds is IP = 1.75%, the liquidity premium for Chandler's bonds is LP = 0.75% versus zero for T-bonds, and the maturity risk premium for all bonds is found with the formula MRP = (t ? 1) × 0.1%, where t = number of years to maturity. What is the default risk premium (DRP) on Chandler's bonds?
A. 0.99%
B. 1.10%
C. 1.21%
D. 1.33%
E. 1.46%
Answer: B
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Whenever one list occurs inside another list, use ________________ for the outer list and ______________ for the inner list
a. numbers/letters b. letters/numbers c. bullets/dashes d. dashes/asterisks
The __________ cloud infrastructure is operated solely for an organization
What will be an ideal response?
The Investment Company Act of 1940 regulates:
a. open-end companies (mutual funds) b. closely held companies c. stock exchanges d. over-the-counter (OTC) exchanges e. all of the other choices