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mash [69]
1 year ago
7

Will a u.s. treasury bill have a risk premium that is higher than, lower than, or the same as that of a similar security (in ter

ms of maturity and liquidity) issued by the government of colombia?
Business
1 answer:
aleksklad [387]1 year ago
7 0

A U.S. Treasury bill will have a lower risk premium since U.S. government-issued securities are usually considered to be default free.

In comparison to a company bond with a Baa rating, a company bond with a score will have a higher risk premium on its interest. While compared to corporate bonds with a Baa rating, the C grade bond has a higher default risk, which reduces demand and increases interest rates.

The equity risk premium enables to set portfolio go back expectancies and decide asset allocation. A better top rate implies that you might make investments a greater percentage of your portfolio into shares. Capital asset pricing also relates a inventories anticipated go back to the equity premium.

Learn more about company here: brainly.com/question/24448358

#SPJ4

You might be interested in
When a firm produces 50,000 units of output, its total cost equals $6.5 million. When it increases its production to 70,000 unit
Komok [63]

Answer:

The marginal cost of an additional unit of output is $145

Explanation:

The computation of marginal cost of an additional unit of output is shown below:

= Change in total cost ÷ change in production level

where,

Change in total cost = Increased cost -  previous cost

                                  = $9.4 million - $6.5 million

                                  = $2.9 million

Thus, change in total cost is $2.9 million

And, change in production level = New production level - existing production level

= 70,000 - 50,000

=20,000

Thus, change in production level  is 20,000

Now,

Apply the above values in the formula which is equals to

=  $2.9 million ÷ 20,000

= $145

Hence, the marginal cost of an additional unit of output is $145

8 0
3 years ago
Drogo, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 14 years to maturity that is qu
just olya [345]

Answer:

a. 7.30%

b. 4.745%

Explanation:

For computing the pretax cost of debt we have to applied the RATE formula i.e to be shown in the attachment below:

Given that,  

Present value = $1,000 × 106% = $1,060

Assuming figure - Future value or Face value = $1,000  

PMT = 1,000 × 8% ÷ 2 = $40

NPER = 14 years × 2 = 28 years

The formula is shown below:  

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative  

So, after applying the above formula

a. The pretax cost of debt is

= 3.65%  × 2

= 7.30%

b. And, the after tax cost of debt would be

= Pretax cost of debt × ( 1 - tax rate)

= 7.30 % × ( 1 - 0.35)

= 4.745%

4 0
3 years ago
You have just turned 30 years​ old, have just received your​ MBA, and have accepted your first job. Now you must decide how much
igor_vitrenko [27]

Answer:

Find attached

Explanation:

The present value of $97,000 per year after retirement for 35 years is computed thus:

=-pv(rate,nper,pmt,fv)

rate is the plan rate of return of 6.5%

nper is 35 years(years after retirement)

pmt is the amount required per year

fv is not applicable is taken as zero

=-pv(6.5%,35,97000,0)=$1,327,634.80  

The amount needed in the account at retirement is the future value of the plan.

Regular yearly payment into the plan is =pmt

=pmt(rate,nper,-pv,fv)

=-pmt(6.5%,35,0,1327634.80)=$ 10,703.74

The percentage of income that must be contributed is found in the attached

Download xlsx
8 0
3 years ago
Kelly noticed her debit card was not in her wallet where she usually keeps it. She quickly checked her car and her desk, but was
GarryVolchara [31]

Answer: I think she should choose D.

Explanation: D because, she should call the bank freeze all of her accounts before anyone can find her cards, and then she can get a new card.

3 0
3 years ago
Read 2 more answers
You are trying to listen to instructions your boss is giving you about a new method for keeping expense accounts. But you find i
alexandr402 [8]

Answer:

Psychological barrier

Explanation:

The type of barrier that you are experiencing is psychological. Psychological barriers result when your personal values are not aligned with the message being received, be it by cultural or ethical values or even by preconceived thoughts. In this situation, since you do not agree with the task at hand of changing the method for keeping the accounts, you find it difficult to focus on the task.

5 0
3 years ago
Read 2 more answers
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