Question
Bonds with lower bond ratings often offered higher rate of return. That extra return is a(n) Taxability premium Liquidity premium Default risk premium Interest rate
Bonds with lower bond ratings often offered higher rate of return. That extra return is a(n)
| Taxability premium | |
| Liquidity premium | |
| Default risk premium | |
| Interest rate risk premium |
You recently bought a car at a price of $20,000, to pay in monthly payments of $500 each for 48 months. What annual interest rate were you charged on the financing of the car?
| 9.24 percent | |
| 7.25 percent | |
| 8.60 percent | |
| 6.25 percent |
The bond of Library Inc. has an 8 percent coupon and pay interest annually. Currently, the bond price is quoted as 105% of its face value. The bonds mature in 6 years. What is the yield to maturity?
| 7.74 percent | |
| 6.95 percent | |
| 8.22 percent | |
| 9.81 percent |
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