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Semenov [28]
3 years ago
11

A Treasury bond due in one year has a yield of 5.7%; a Treasury bond due in 5 years has a yield of 6.2%. A bond issued by Ford d

ue in 5 years has a yield of 7.5%; a bond issued by Shell Oil due in one year has a yield of 6.5%. The default risk premiums on the bonds issued by Shell and Ford, respectively, are:__________. a. 1.0% and 1.2% b. 1.2% and 1.0%. c. 0.7% and 1.5%. d. 0.8% and 1.3%.
e. None of the options are correct
Business
1 answer:
SVETLANKA909090 [29]3 years ago
7 0

Answer:

d. 0.8% and 1.3%.

Explanation:

The default risk premiums on the bonds issued by Shell = 6.5% - 5.7% = 0.8%

The default risk premiums on the bonds issued by Ford = 7.5% - 6.2% = 1.3%

Hence, the default risk premium issued by Shell and Ford respectively are 0.8% and 1.3%

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Which do you think creates more of a challenge for marketers, multiculturalism or multigenerationalism? EXPLAIN
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3 years ago
An entrepreneur looking for financing to get her small, personally-owned business up and running should probably consider; (16-2
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An entrepreneur looking for financing to get her small, personally-owned business up and running should probably consider a venture capital .

Option D

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4 0
3 years ago
A new security system has a price-tag of $8,000, but should save your company $3,600 each year for the next 10 years in reduced
tensa zangetsu [6.8K]

If the required rate of return is 7.2%, no such security shall be purchased.

<h3>What does the required rate of return mean?</h3>

The required rate of return is the expected percentage of returns on investment at the time the investment is made. The required rate of return, in this case, is 7.2%.

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As a result, if the required rate of return on investment is 7.2%, the security should not be purchased.

Read more about the required rate of return here:

brainly.com/question/13987385

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