A treasury bond due in one year has a yield of 2.40% while a treasury bond due in 5 years has a yield of 4.50%. A bond due in one year issued by High Country Marketing Corporation has a yield of 5.06% while a bond due in 5 years issued by High Country Marketing Corporation has a yield of 6.54%. The default risk premiums on the one-year and 5-year bonds issued by High Country Marketing Corp. are respectively __________ and __________. Group of answer choices A. 2.66% and 2.04% B. 3.32% and 2.88% C. 2.89% and 2.47% D. 3.25% and 2.83% E. 2.71% and 2.29%
A treasury bond due in one year has a yield of 2.40% while a treasury bond due in 5 years has a yield of 4.50%. A bond due in one year issued by High Country Marketing Corporation has a yield of 5.06% while a bond due in 5 years issued by High Country Marketing Corporation has a yield of 6.54%. The default risk premiums on the one-year and 5-year bonds issued by High Country Marketing Corp. are respectively __________ and __________. Group of answer choices A. 2.66% and 2.04% B. 3.32% and 2.88% C. 2.89% and 2.47% D. 3.25% and 2.83% E. 2.71% and 2.29%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A treasury bond due in one year has a yield of 2.40% while a treasury bond due in 5 years has a yield of 4.50%. A bond due in one year issued by High Country Marketing Corporation has a yield of 5.06% while a bond due in 5 years issued by High Country Marketing Corporation has a yield of 6.54%. The default risk premiums on the one-year and 5-year bonds issued by High Country Marketing Corp. are respectively __________ and __________.
Group of answer choices
A. 2.66% and 2.04%
B. 3.32% and 2.88%
C. 2.89% and 2.47%
D. 3.25% and 2.83%
E. 2.71% and 2.29%
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