Question: please help me with all these please Given the following yield curve, calculate: Yield 7.0% t i 1 = 7.0% 6.25% t i 2 =

please help me with all these please

Given the following yield curve, calculate:

Yield 7.0%

ti1 = 7.0% 6.25%

ti2 = 6.25% 6% 5.75%

ti3 = 6.0% 5%

ti4 = 5.75%

ti5 =5.0%

1 2 3 4 5

Maturity

The rate on a one year bond you purchase one year from today is:

4.5%

5.51%

7%

6.25%

Default risk is likely to be highest for:

AAA corporate securities

commercial loans

BBB corporate bonds

long-term Treasury bonds

All of the following are likely contributors to the 2007-2008 financial crisis except:

the overwhelming desire of managers to improve profits quarter after quarter.

compensation plans at banks that rewarded risk and production.

The government making large banks take equity, partially nationalizing the banking system.

loan securitization passing risk on to the next guy.

mortgage loans made without documentation or proof of income.

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