QUESTION 12 a yield of 7.36%. A Treasury bond due in one year has a yield of 2.3%; a Treasury bond due in five years has a yield of 3.18%. A bond issued by Boeing due in five years whats the default risk premiums on the bonds issued by Boeing? a. 0.88% b. 736.00% c. 4.18% d.5.06% QUESTION 13 Which of the following is true? a. STRIPS are the bonds that are transferred into interest-only securities. b. variable-rate bonds are desirable to investors who expect that interest rates will rise. c. Treasury bonds are issued by state and local governments. d. In weak economy, junk bonds require lower risk premiums than strong economic periods. QUESTION 14 "If an investment provides a 0.85% return monthly, what is its effective annual rate? a. 10.69% b.16.49% c. 0.85% d. 3.44%