The T-bill rate is 3.25%. The 10-year T-bond is 4.83%. The 30-year T-bond is 5.95%.

The 10-year AAA bond is 5.34%. The 30-year AAA bond is 6.86%.

The 10-year BB bond is 8.77%. The 30-year BB bond is 9.47%.

What is the additional maturity risk premium for long-term, high quality corporate bonds?

2.70%

1.52%

1.12%

0.91%

Which of the following is true?

		inflation increases the time value of money
		competitive markets allow all firms to earn economic profits
		diversification increases risk
		the marginal tax rate is more important than the average tax rate

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%

Currently in the market, the three month Treasury bill has a rate of 3.10%.

The ten year Treasury note has a rate of 3.34%.

The thirty year Treasury bond has a rate of 4.06%.

The ten year AAA corporate bond has a rate of 3.77%.

The thirty year AAA corporate bond has a rate of 4.12%.

The ten year BBB corporate bond has a rate of 4.24%.

The thirty year BBB corporate bond has a rate of 4.86%.

What is the default risk for a long-term, high-quality corporate bond?

		0.74%
		0.35%
		1.02%
		0.06%

The inflation in Country JBK is expected to increase 4%. Assuming other things being equal, Country JBK's interest rates will ______________

		increase.
		decrease.
		stay the same.
		more information is needed to answer this question.

Currently in the market, the three month Treasury bill has a rate of 4.17%.

The ten year Treasury note has a rate of 5.72%.

The thirty year Treasury bond has a rate of 8.43%.

The ten year AAA corporate bond has a rate of 6.56%.

The thirty year AAA corporate bond has a rate of 8.69%.

The ten year BBB corporate bond has a rate of 7.85%.

The thirty year BBB corporate bond has a rate of 9.40%.

What is the additional maturity risk for a long-term, average quality Treasury bond?

		1.55%
		4.26%
		2.71%
		1.16%

An investor is considering buying stock in either Technology Company A or Technology Company B. Technology Company A is well-known company that trades on the New York Stock Exchange. Technology Company B is a small company that not a lot of people know about. Which of the following is most likely TRUE?

		Technology Company B trades on the New York Stock Exchange
		Technology Company B trades on the Nasdaq
		Technology Company B will sell at a higher P/E than Technology Company A
		Technology Company B has higher sales than Technology Company A

Which of the following is false?

		Enron focused more on cash than profits
		The energy situation in California raised profits for Enron
		Enron employees who lost in the debacle were reimbursed for their losses
		The stock price was falling before the news of problems became public knowledge

Currently in the market, the three month Treasury bill has a rate of 3.10%.

The ten year Treasury note has a rate of 3.34%.

The thirty year Treasury bond has a rate of 4.06%.

The ten year AAA corporate bond has a rate of 3.77%.

The thirty year AAA corporate bond has a rate of 4.12%.

The ten year BBB corporate bond has a rate of 4.24%.

The thirty year BBB corporate bond has a rate of 4.86%.

What is the default risk for a medium-term, medium-quality corporate bond?

		0.90%
		0.47%
		0.62%
		0.24%