3-year 90-day 3-year Treasury notes Commercial paper Corporate bonds (AA) 9.10 percent 9.15 percent 9.95 percent

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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mni.3

 

0.85%
0.79%
90-day
180-day
2-year
3-year
90-day
3-year
3-year
Expected 2-year inflation rate
1.74%
O 1.00%
Treasury bills
Treasury bills
Treasury notes.
Treasury notes
Commercial paper
Corporate bonds (AA)
Municipal (AA)
With reference to the data above, what is the default risk premium on a 3-year corporate bond?
8.36 percent
8.48 percent
8.90 percent
9.10 percent
9.15 percent
9.95 percent
7.07 percent
3.50 percent
Transcribed Image Text:0.85% 0.79% 90-day 180-day 2-year 3-year 90-day 3-year 3-year Expected 2-year inflation rate 1.74% O 1.00% Treasury bills Treasury bills Treasury notes. Treasury notes Commercial paper Corporate bonds (AA) Municipal (AA) With reference to the data above, what is the default risk premium on a 3-year corporate bond? 8.36 percent 8.48 percent 8.90 percent 9.10 percent 9.15 percent 9.95 percent 7.07 percent 3.50 percent
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