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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