The two major components of the interest rate that cause rates to vary across different investment opportunities or loans are ________

A) the default premium and the bankruptcy premium
B) the liquidity premium and the maturity premium
C) the default premium and the maturity premium
D) the inflation premium and the maturity premium


Answer: C

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Bonds with a face amount $1,000,000, are sold at 106. The entry to record the issuance is:

A) Cash 1,000,000Premium on Bonds Payable 60,000Bonds Payable 1,060,000 B) Cash 1,060,000Premium on Bonds Payable 60,000Bonds Payable 1,000,000 C) Cash 1,060,000Discount on Bonds Payable 60,000Bonds Payable 1,000,000 D) Cash 1,060,000Bonds Payable 1,060,000

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Explain why some companies get to the top of industry rankings and stay there, while others do not.

What will be an ideal response?

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The Financial Accounting Standards Board (FASB) Standard No. 52 mandates that U.S.-based companies translate their foreign-currency-denominated assets and liabilities into dollars using the current rate (translation) method

Indicate whether the statement is true or false

Business

Under the Fair and Accurate Credit Transaction Act, credit reporting services must:

a. ensure that credit reports are provided to creditors upon request b. allow consumers to see their credit reports upon request for free c. allow consumers to see their credit reports for $10 d. notify consumers any time their credit reports have been accessed by an outside party e. none of the other choices

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