$8$

Multiple Choice

$1\mathrm{.}5$ points

A Treasury bond due in one year has a yield of $4\mathrm{.}6\%$; a Treasury bond due in five years has a yield of $5\mathrm{.}6\%.$ A bond issued by Lucent Technologies due in five years has a yield of $8\mathrm{.}9\%$; a bond issued by Exoon due in one year has a yield of $6\mathrm{.}2\%.$ The default risk premiums on the bonds issued by Exoron and Lucent Technologles, respectively, are

None of the options are correct.

$1\mathrm{.}6\%$ and $3\mathrm{.}3\%.$

$0\mathrm{.}5\%$ and $0\mathrm{.}7\%.$

$0\mathrm{.}7\%$ and $0\mathrm{.}5\%.$

$3\mathrm{.}3\%$ and $1\mathrm{.}6\%.$

Clear my selection