Question
Currently in the market, the three month Treasury bill has a rate of 3.89%. The ten year Treasury note has a rate of 4.23%. The
Currently in the market, the three month Treasury bill has a rate of 3.89%.
The ten year Treasury note has a rate of 4.23%.
The thirty year Treasury bond has a rate of 4.95%.
The ten year AAA corporate bond has a rate of 5.37%.
The thirty year AAA corporate bond has a rate of 5.60%.
The ten year BBB corporate bond has a rate of 5.52%.
The thirty year BBB corporate bond has a rate of 5.94%.
What is the default risk for a medium-term, medium/average quality corporate bond?
| 1.14% | |
| 1.29% | |
| 0.15% | |
| 0.42% |
Currently in the market, the three month Treasury bill has a rate of 4.73%.
The ten year Treasury note has a rate of 4.98%.
The thirty year Treasury bond has a rate of 5.38%.
The ten year AAA corporate bond has a rate of 5.21%.
The thirty year AAA corporate bond has a rate of 5.69%.
The ten year BBB corporate bond has a rate of 5.74%.
The thirty year BBB corporate bond has a rate of 6.11%.
What is the maturity risk for a medium-term, high quality corporate bond?
| 0.65% | |
| 0.76% | |
| 1.01% | |
| 0.25% |
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