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

Author Question: The reason for a difference in the yield between a Aaa corporate bond and an otherwise identical Baa ... (Read 40 times)

Shelles

  • Hero Member
  • *****
  • Posts: 582
on: Jul 11, 2018
The reason for a difference in the yield between a Aaa corporate bond and an otherwise identical Baa bond is the risk premium; other things being equal.
 
  Indicate whether the statement is true or false

Question 2

The components of risk premium includes business risk, financial risk, interest rate risk, liquidity risk, and tax risk.
 
  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

Beatricemm

  • Sr. Member
  • ****
  • Posts: 323
Reply #1 on: Jul 11, 2018
Answer to Question 1

TRUE

Answer to Question 2

TRUE


Shelles

  • Member
  • Posts: 582
Reply 2 on: Jul 11, 2018
Excellent

dreamfighter72

  • Member
  • Posts: 355
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

After 5 years of being diagnosed with rheumatoid arthritis, one every three patients will no longer be able to work.

Did you know?

Nearly 31 million adults in America have a total cholesterol level that is more than 240 mg per dL.

Did you know?

Eating carrots will improve your eyesight. Carrots are high in vitamin A (retinol), which is essential for good vision. It can also be found in milk, cheese, egg yolks, and liver.

Did you know?

Though the United States has largely rejected the metric system, it is used for currency, as in 100 pennies = 1 dollar. Previously, the British currency system was used, with measurements such as 12 pence to the shilling, and 20 shillings to the pound.

Did you know?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

Positron emission tomography (PET) image showing the difference in the metabolic activity of the bra Positron emission tomography (PET) image showing the difference in the metabolic activity of the bra
The difference between mieosis and mitoses The difference between mieosis and mitoses
Difference between.... Difference between....
Catalysis of peptide bond hydrolysis by chymotrypsin (part 2) Catalysis of peptide bond hydrolysis by chymotrypsin (part 2)
Difference Between Solar and Sidereal Day Difference Between Solar and Sidereal Day
Peptide bond formation between two amino acids, resulting from a dehydration reaction Peptide bond formation between two amino acids, resulting from a dehydration reaction
Video: Acid-base imbalances - metabolic acidosis and alkalosis

For a complete list of videos, visit our video library