« previous next »

Author Question: The inflation risk premium on a bond is 2 percent, the U.S. T-bill rate is 5 percent, the maturity ... (Read 100 times)

justinmsk

  • Hero Member
  • *****
  • Posts: 524
on: Jul 11, 2018
The inflation risk premium on a bond is 2 percent, the U.S. T-bill rate is 5 percent, the maturity risk premium on the bond is 3 percent, the default risk premium on the bond is 2 percent, and the liquidity risk premium on the bond is 1 percent.
 
  Calculate its nominal rate of return.
  A) 16
  B) 13
  C) 11
  D) 9

Question 2

Both current and prospective shareholders are interested in the firm's current and future level of risk and return, which directly affect share price.
 
  Indicate whether the statement is true or false


juliaf

  • Sr. Member
  • ****
  • Posts: 344
Reply #1 on: Jul 11, 2018
Answer to Question 1

B

Answer to Question 2

TRUE


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Sperm cells are so tiny that 400 to 500 million (400,000,000–500,000,000) of them fit onto 1 tsp.

Did you know?

As many as 28% of hospitalized patients requiring mechanical ventilators to help them breathe (for more than 48 hours) will develop ventilator-associated pneumonia. Current therapy involves intravenous antibiotics, but new antibiotics that can be inhaled (and more directly treat the infection) are being developed.

Did you know?

According to the Migraine Research Foundation, migraines are the third most prevalent illness in the world. Women are most affected (18%), followed by children of both sexes (10%), and men (6%).

Did you know?

Adolescents often feel clumsy during puberty because during this time of development, their hands and feet grow faster than their arms and legs do. The body is therefore out of proportion. One out of five adolescents actually experiences growing pains during this period.

Did you know?

Drug-induced pharmacodynamic effects manifested in older adults include drug-induced renal toxicity, which can be a major factor when these adults are experiencing other kidney problems.

A1C Levels Predict Risk of Complications A1C Levels Predict Risk of Complications
Percent of Mothers in the Workforce by Age of Children and Marital Status Percent of Mothers in the Workforce by Age of Children and Marital Status
How to convert units of any rate to another (Part 3) How to convert units of any rate to another (Part 3)
How to convert fractions to decimals to percent How to convert fractions to decimals to percent
For each function f(x) = 6x^2 - 4, estimate the instantaneous rate of change for the given ... For each function f(x) = 6x^2 - 4, estimate the instantaneous rate of change for the given ...
Determine the mass percent of Fe3+ in a 0.546g sample of iron ore, if 22.40 mL of a 0.1000 M ... Determine the mass percent of Fe3+ in a 0.546g sample of iron ore, if 22.40 mL of a 0.1000 M ...
Video: Definitions of stroke volume, preload definition & Factors influencing stroke volume

For a complete list of videos, visit our video library