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 84 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
Wow, this really help

hramirez205

  • Member
  • Posts: 345
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Though Candida and Aspergillus species are the most common fungal pathogens causing invasive fungal disease in the immunocompromised, infections due to previously uncommon hyaline and dematiaceous filamentous fungi are occurring more often today. Rare fungal infections, once accurately diagnosed, may require surgical debridement, immunotherapy, and newer antifungals used singly or in combination with older antifungals, on a case-by-case basis.

Did you know?

Hippocrates noted that blood separates into four differently colored liquids when removed from the body and examined: a pure red liquid mixed with white liquid material with a yellow-colored froth at the top and a black substance that settles underneath; he named these the four humors (for blood, phlegm, yellow bile, and black bile).

Did you know?

Asthma is the most common chronic childhood disease in the world. Most children who develop asthma have symptoms before they are 5 years old.

Did you know?

Multiple sclerosis is a condition wherein the body's nervous system is weakened by an autoimmune reaction that attacks the myelin sheaths of neurons.

Did you know?

A cataract is a clouding of the eyes' natural lens. As we age, some clouding of the lens may occur. The first sign of a cataract is usually blurry vision. Although glasses and other visual aids may at first help a person with cataracts, surgery may become inevitable. Cataract surgery is very successful in restoring vision, and it is the most frequently performed surgery in the United States.

Difference between.... Difference between....
A typical open-end wrench. Note the size difference on each end and that the head is angled 15 ... A typical open-end wrench. Note the size difference on each end and that the head is angled 15 ...
identical (left) and fraternal (right) twins identical (left) and fraternal (right) twins
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 ...
Peptide bond formation between two amino acids, resulting from a dehydration reaction Peptide bond formation between two amino acids, resulting from a dehydration reaction
Ionic Bond: Sodium Chloride Ionic Bond: Sodium Chloride
Video: X chromosome inactivation in calico cats

For a complete list of videos, visit our video library