This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: If you could borrow at 9.5 compounded semi-annually or at 9.4 compounded monthly, which would you ... (Read 214 times)

newbem

  • Hero Member
  • *****
  • Posts: 579
on: Jul 10, 2018
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.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

efwsefaw

  • Sr. Member
  • ****
  • Posts: 351
Reply #1 on: Jul 10, 2018
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

  • Member
  • Posts: 579
Reply 2 on: Jul 10, 2018
Gracias!

juliaf

  • Member
  • Posts: 344
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

In the United States, congenital cytomegalovirus causes one child to become disabled almost every hour. CMV is the leading preventable viral cause of development disability in newborns. These disabilities include hearing or vision loss, and cerebral palsy.

Did you know?

Eat fiber! A diet high in fiber can help lower cholesterol levels by as much as 10%.

Did you know?

A cataract is a clouding of the eyes' natural lens. As we age, some clouding of the lens may occur. The first sign of a cataract is usually blurry vision. Although glasses and other visual aids may at first help a person with cataracts, surgery may become inevitable. Cataract surgery is very successful in restoring vision, and it is the most frequently performed surgery in the United States.

Did you know?

Signs and symptoms of a drug overdose include losing consciousness, fever or sweating, breathing problems, abnormal pulse, and changes in skin color.

Did you know?

The lipid bilayer is made of phospholipids. They are arranged in a double layer because one of their ends is attracted to water while the other is repelled by water.

How to calculate annuity when compounded quarterly (Part 2) How to calculate annuity when compounded quarterly (Part 2)
If you are able to earn 6.2% compounded semi-annually in an account, how long will it take for ... If you are able to earn 6.2% compounded semi-annually in an account, how long will it take for ...
What rate, compounded once every 3 years, is equivalent to 9% effective rate? What rate, compounded once every 3 years, is equivalent to 9% effective rate?
You deposit $2000 each year into an account earning 4% interest compounded annually. How much ... You deposit $2000 each year into an account earning 4% interest compounded annually. How much ...
A debt payment of $7500 is due in 24 months. If money is worth 7.2% p.a. compounded quarterly, ... A debt payment of $7500 is due in 24 months. If money is worth 7.2% p.a. compounded quarterly, ...
No payments were made on a $2,598 loan during its three-year term. What was the annually ... No payments were made on a $2,598 loan during its three-year term. What was the annually ...
Video: Cardiac Cycle (Part 4 of 4)

For a complete list of videos, visit our video library