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Author Question: If you could borrow at 9.5 compounded semi-annually or at 9.4 compounded monthly, which would you ... (Read 186 times)

newbem

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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.


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efwsefaw

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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

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Reply 2 on: Jul 10, 2018
Great answer, keep it coming :)

Viet Thy

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Reply 3 on: Yesterday
Excellent

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