Suppose 10-year T-bonds have a yield of 5.30% and 10-year corporate bonds yield 6.65%. Also, corporate bonds have a 0.25% liquidity premium versus a zero liquidity premium for T-bonds, and the maturity risk premium on both Treasury and corporate 10-year bonds is 1.15%. What is the default risk premium on corporate bonds?
A. 1.22%
B. 1.10%
C. 1.34%
D. 0.86%
E. 1.20%
Answer: B
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In U.S. v. LaGrou Distribution Systems, the defendant-company suffered from an extremely serious rat infestation. Stewart, the president of LaGrou, defended, saying he had no specific knowledge of meat contamination and therefore he was not culpable. Which of the following was the result?
A. Stewart was found guilty because he knew of the rat problem and did not do all that could be done to control the problem. B. Stewart was found guilty because even though his subordinates hid the problem from him, they did so in the normal course of business, thus making senior management liable. C. Stewart was found not guilty because he recognized the problem and instructed employees to work daily to control the problem. D. Stewart was found not guilty because the court recognized that when 20 million pounds of meat are stored in a facility, it is impossible to control rats that target the meat.
Bernstein Inc Bernstein Inc is a local retailer. The following selected information is available from their 2011 and 2012 financial statements: Accounts receivable at 12/31/11 $ 160,000 Accounts receivable at 12/31/12 240,000 Inventory at 12/31/11 300,000 Inventory at 12/31/12 360,000 Net credit sales for 2012 3,400,000 Cost of goods sold for 2012 1,980,000 Net income for 2012 1,000,000 Refer to
the Bernstein Inc information above. What was Bernstein's number of days inventory was held before sale in 2012? (round to two decimal places) A) 121.67 days B) 60.83 days C) 120.46 days D) 240.13 days
Which of the following is not a key difference between permanent and temporary strike replacements?
A. Permanent strike replacements are allowed in economic strikes but not in unfair labor practice strikes. B. After the contract is settled, permanent strike replacements are allowed to keep their jobs while temporary strike replacements must be let go to make room for returning striking employees. C. Temporary strike replacements do not become union members after a contract is settled while permanent strike replacements will have to become union members. D. Permanent strike replacements must receive all of the benefits of the union contract during the dispute while temporary strike replacements cannot.
Clearwater Office Supply sells frequently purchased office supplies to businesses in a metropolitan area. It is a well-established company with a large share of the market. Its promotion should probably focus on
A. informing. B. reminding. C. stimulating primary demand. D. innovators. E. making the demand curve less elastic.