Question 12 (4 points) compensates the investor for the additional risk that the

Question

Question 12 (4 points) compensates the investor for the additional risk that the bond coupon payments The and/or face value will not be repaid in full as promised Page 1 1) Default premium 2) Inflation premium 3) Liquidity premium 4) Taxability premium 10 11 1 Question 13 (4 points) The Treasury yield curve plots the yields of the Treasury securities relative to the??01 those securities 13 14 1 1) face value 2) murket price 3) coupon rate 4) maturity 16 17 19 20 2 22 23 24 Question 14(4 points) One outstanding bond of Kennesaw Dynamics Co. provides a yield to maturity equal to 10.82 percent. If the inflation rate 2.8 percent. What is the actual real rate of return on this bond? 25 Legend Saved Respons 1) 6.93 percent 2) 7.58 percent 3 780 percent 4)8,07 Dercent Question 2 Saved

Explanation / Answer

12 default premium

13. maturity

14. = (1.1082)/1.028 - 1 = 7.80 percent

15 Sinking fund

16 default risk

17 1, III and Iv

max of 4 subsections can be answered

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.