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please explain why. thank you in advance!
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BJ's Wholesale Club Holdings issued an initial Public Offering June 28, 2020 at a price of $28. The stock is now trading for $22. Which of the following are true given this information? OB's Wholesale sold its products to the public for the first time on June 28 O Ordinary investors have been able to own BJ's stock since June 28 The original investors in BJ's wholesale would be very happy with their investment Ordinary investors cannot own the stock, only employess can own the stock starting June 28. Investors can now buy the bonds of Bus on a bond exchange The yields (interest rates) of 30 year Walmart bonds are 3.6% while the yields interest rates) on 5 year Walmart bonds are 2.1%. Assume inflation is expected to stay constant and there is no liquidity risk for Walmart's bonds. The difference in rates is due to Interest rates being very high in 2020 The liquidity risk premium is higher for the 30 year bonds There is a great maturity risk premium for 30 year Walmart bonds There is greater default risk for Walmarts 30 year bonds. The real risk free rate is higher on the 30 year bonds. If the 2020 Walmart Balance Sheet shows a lower amount of gross long term assets than was on the 2019 Balance Sheet, this O is a use of funds O is a dividend received by stockholders Is a cash inflow Is a cash outflow O is a direct increase in Net Income BJ's Wholesale Club Holdings issued an Initial Public Offering June 28, 2020 at a price of $28. The stock is now trading for $22. Which of the following are true given this information? OBJ's Wholesale sold its products to the public for the first time on June 28 O Ordinary investors have been able to own BJ's stock since June 28. The original investors in BJ's wholesale would be very happy with their investment. o Ordinary investors cannot own the stock; only employess can own the stock starting June 28. Investors can now buy the bonds of BJs on a bond exchange If Costco buys back $100 million of stock so that the Common Stock Par and Paid in capital decreases $100 million O This will be a cash inflow O Revenues will decrease by $100 million today O This will not affect cash as it is simply a Balance Sheet adjustment O This will be a cash outflow O This will cause the Net Income of Costco to decrease $100 million The yields (interest rates) of 30 year Walmart bonds are 3.6% while the yields (interest rates) on 5 year Walmart bonds are 2.1%. Assume inflation is expected to stay constant and there no liquidity risk for Walmart's bonds. The difference in rates is due to Interest rates being very high in 2020 The liquidity risk premium is higher for the 30 year bonds. There is a great maturity risk premium for 30 year Walmart bonds. There is greater default risk for Walmarts 30 year bonds. The real risk free rate is higher on the 30 year bonds. Assume the US government bond rates are as follows 1 month rate - 0.8% 2 year rate - 1.50% 10 year rate 1.89% 30 year rate - 2.51% . . What is the maturity risk premium for 10 year US government bonds? (Express in decimals so 5.45% is .0545)
