11:59 .ull : t Question 8 0/1 pts The Fed offers three types of discount window loans. credit is offered to sound institutions for short-term temporary funds outflows, credit may be offered to troubled institutions with more severe liquidity problems, and credit is offered to small institutions with demonstrable patterns of financing needs. Seasonal: secondary: primary Extended adjustment seasonal Primary, secondary: seasonal Adjustment; seasonal: extended Seasonal; primary: secondary t Question 9 0/1 pts Suppose there are two kinds of computers: Reliable ones. Ones that crash frequently. Suppose that some fraction of all personal computers are defective. The defective ones, however, cannot be identified except by those who own them. Consumers are risk-neutral and value nondefective computers at S1500 each. Computers do not depreciate physically with use. New computers sell for $1300, used ones for $500. What isz? fiu.instructure.com 11:59 7 ill? t Question 4 0/1 pts A particular security's equilibrium rate of return is 9%. For all securities, the inflation risk premium is 2.75 percent and the real interest rate is 3 percent The security's liquidity risk premium is.50 percent and maturity risk premium is.75 percent. The security has no special covenants. What is the security's default risk premium? Hint: it = 1P+RIR + DRP + LRP + SCP + MRP 4% 2 29% 3% 6% 5% i* = IP+RIR + DRP + LRP + SCP + MRP 9% = 2.75% +3% + DRP +.50% +0% + 75% Thus, DRP = 9% - 2.75% -3% -50% -0% 75% = 2% = fiu.instructure.com