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

Author Question: If you could borrow at 9.5 compounded semi-annually or at 9.4 compounded monthly, which would you ... (Read 217 times)

newbem

  • Hero Member
  • *****
  • Posts: 579
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.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

efwsefaw

  • Sr. Member
  • ****
  • Posts: 351
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

  • Member
  • Posts: 579
Reply 2 on: Jul 10, 2018
:D TYSM

meganmoser117

  • Member
  • Posts: 303
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

GI conditions that will keep you out of the U.S. armed services include ulcers, varices, fistulas, esophagitis, gastritis, congenital abnormalities, inflammatory bowel disease, enteritis, colitis, proctitis, duodenal diverticula, malabsorption syndromes, hepatitis, cirrhosis, cysts, abscesses, pancreatitis, polyps, certain hemorrhoids, splenomegaly, hernias, recent abdominal surgery, GI bypass or stomach stapling, and artificial GI openings.

Did you know?

About 100 new prescription or over-the-counter drugs come into the U.S. market every year.

Did you know?

Throughout history, plants containing cardiac steroids have been used as heart drugs and as poisons (e.g., in arrows used in combat), emetics, and diuretics.

Did you know?

There are more nerve cells in one human brain than there are stars in the Milky Way.

Did you know?

The human body produces and destroys 15 million blood cells every second.

The monthly changes of angle between the direction of illumination by the Sun and viewing from Earth The monthly changes of angle between the direction of illumination by the Sun and viewing from Earth
How to calculate annuity when compounded quarterly (Part 2) How to calculate annuity when compounded quarterly (Part 2)
How to calculate monthly payments at varying amortization periods (Question 2) How to calculate monthly payments at varying amortization periods (Question 2)
Mean Monthly Temperatures for Two Locations in Canada Mean Monthly Temperatures for Two Locations in Canada
Nine $10 000, 4% bonds with interest payable semi-annually and redeemable at par are purchased ... Nine $10 000, 4% bonds with interest payable semi-annually and redeemable at par are purchased ...
No payments were made on a $2,598 loan during its three-year term. What was the annually ... No payments were made on a $2,598 loan during its three-year term. What was the annually ...
Video: Cellular Defects - Osteoblasts, Osteoclasts and Osteocytes

For a complete list of videos, visit our video library