If you could borrow at 9.5 compounded semi-annually or at 9.4 ...

[newbem]

If you could borrow at 9.5 compounded semi-annually or at 9.4 compounded monthly, which would you prefer?
 
  A) 9.5 compounded semi-annually
  B) Indifferent
  C) 9.4 compounded monthly

Question 2

We assign a very low probability of default to the U.S. Treasury and thus assume that all Treasury bills will be paid in full at maturity and thus have a zero default premium.
 
  Indicate whether the statement is true or false.

[efwsefaw]

Answer to Question 1

A

Answer to Question 2

Answer: TRUE
Explanation: We assign a very, very low probability of default to the U.S. Treasury and thus assume that all Treasury bills will be paid in full at maturity and thus have a ZERO default premium.

[newbem]

Excellent

[sultansheikh]

Gracias!