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 72 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

steff9894

  • Member
  • Posts: 337
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

The first documented use of surgical anesthesia in the United States was in Connecticut in 1844.

Did you know?

During the twentieth century, a variant of the metric system was used in Russia and France in which the base unit of mass was the tonne. Instead of kilograms, this system used millitonnes (mt).

Did you know?

Addicts to opiates often avoid treatment because they are afraid of withdrawal. Though unpleasant, with proper management, withdrawal is rarely fatal and passes relatively quickly.

Did you know?

Oxytocin is recommended only for pregnancies that have a medical reason for inducing labor (such as eclampsia) and is not recommended for elective procedures or for making the birthing process more convenient.

Did you know?

Though “Krazy Glue” or “Super Glue” has the ability to seal small wounds, it is not recommended for this purpose since it contains many substances that should not enter the body through the skin, and may be harmful.

The effective temperature, or black body temperature, of the Sun (5777 K) is the temperature a black The effective temperature, or black body temperature, of the Sun (5777 K) is the temperature a black
Formation of a peptide bond by a condensation reaction. Formation of a peptide bond by a condensation reaction.
Difference Between a Sidereal Month and a Synodic Month Difference Between a Sidereal Month and a Synodic Month
Difference of Squares Difference of Squares
Nick buys a $25 000, 5.4% bond with quarterly interest coupons, 3 years before maturity, to ... Nick buys a $25 000, 5.4% bond with quarterly interest coupons, 3 years before maturity, to ...
Solve Diophantus’s Problem B–8: To find two numbers such that their difference a Solve Diophantus’s Problem B–8: To find two numbers such that their difference a
Video: Baroreceptor Reflex

For a complete list of videos, visit our video library