The writer is very fast, professional and responded to the review request fast also. Thank you.
6
If the nominal interest rate per year is 10 percent and the inflation rate is 4 percent, what is the real rate of interest?
a. 10.0 percent
b. 4.1 percent
c. 5.8 percent
d. 14.0 percent
7
As CFO of your corporation, you would prefer (all else equal) to see the price of your corporation’s bonds
a. increase, indicating that bond investors view your firm as less risky.
b. decrease, indicating that bond investors view your firm as less risky.
c. increase, indicating that bond investors view your firm as more willing to take risks.
d. decrease, indicating that bond investors view your firm as more willing to take risks.
8
The duration of any bond is the same as its maturity.
True
False
9
If the term structure of interest rates is flat, then the 9-year spot interest rate equals the 10-year spot interest rate.
True
False
10
U.S. Treasury bonds have almost zero default risk but are subject to inflation risk.
True
False
11.
Corporate bond yields are generally higher than government bond yields for bonds having the same coupon rate and maturity.
True
False
12.
A U.S. Treasury “strip” is a zero-coupon bond.
True
False
Show more
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more