Consider the following hypothetical situation. The interest rate on a two-year bond today is 7.5 percent and the interest rates on two one-year bonds are 3 percent and 4 percent respectively. The term premium earned by the investors is

A. 5 percent.
B. 4 percent.
C. 4.25 percent.
D. 6 percent.


Answer: B

Business

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A. polychronic relationship B. intimate relationship C. interpersonal relationship D. familial relationship

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Regarding economic and social development

A. foreign direct investment was found to have a significant and negative impact on export performance for both developed and developing countries. B. the impact of FDI is strongest for the two best-performing groups of exporters and at their later stages of export development. C. foreign direct investment was found to have a significant and negative impact on export performance, but only for developing countries. D. FDI plays a key role in influencing the composition of exports, including the technological content of the goods produced in a nation and the development of sufficient capacity to meet export demand for these goods. E. foreign direct investment was found to have a significant and negative impact on export performance, but only for developed countries.

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The major value drivers that managers have at their disposal include product features, customer service, and complements.

Answer the following statement true (T) or false (F)

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PPP will not hold if the goods are not transportable or ________

A) Close substitutes B) Unique C) Expensive D) Cheap

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