Question: please help with these questions, struggling here Question 25 (2.5 points) The tax treatments of assets affects the risk structure of assets True False Question





please help with these questions, struggling here
Question 25 (2.5 points) The tax treatments of assets affects the risk structure of assets True False Question 26 (2.5 points) Assume that in 2019 nominal interest rate on a one year bond is 2% and in 2020 it is expected to be 4% and the risk premium on the bond is 0.03%. Based on the "liquidity premium theory" in 2019 interest rate on a two year bond should be, 04.03% 03.03% 5% 06% Question 28 (2.5 points) Assume that in 2019 nominal interest rate on a one year bond is 2% and in 2020 it is expected to be 4% and the risk premium on the bond is 0.03%. Based on the "expectations theory" in 2019 interest rate on a two year bond should be, 04.03% O O O Question 32 (2.5 points) Assume that a one-year bond currently pays 5% interest. It's expected that it will pay 4.5% next year and 4% the following year. The two-year term premium is 0.2% while the three-year term premium is 0.35%. What is the interest rate on a 3 year bond according to the liquidity premium theory? 4.87% O4% 04.5% 4.85% Question 35 (2.5 points) Financial instruments that have the same maturity can pay different rates of interest due to differences in default risks, taxation and information cost. These determinants are called, the risk structure of interest rates The risk and term structure of interest rates the term structure of interest rates Onone of the answers are correct Question 39 (2.5 points) The shortcoming of the expectations theory is that it fails to recognize investors require (to be paid) a premium to hold long-term assets. True False
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