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Author Question: Tootsie Roll Industries' 10-year bonds are priced to yield 7%. Economists predict that real rates ... (Read 66 times)

imowrer

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on: Apr 25, 2021
Tootsie Roll Industries' 10-year bonds are priced to yield 7%. Economists predict that real rates and inflation will remain constant over the next ten years at 3% and 2%, respectively. Bond analysts estimate that the maturity risk premium for a 10-year maturity is 0.25% and that the liquidity risk premium for Tootsie's bond is 0.50%. What is the default risk premium for Tootsie's bond?
◦ 0.94%
◦ 0.99%
◦ 1.00%
◦ 1.09%
◦ 1.19%
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Marked as best answer by imowrer on Apr 25, 2021

dajones82

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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imowrer

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Reply 2 on: Apr 25, 2021
Thanks for the timely response, appreciate it

okolip

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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