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The yields of 30 year Walmart bonds are 3.6% while General Motors, 30 year bonds have a yield of 4.9%. This is due to a.

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The yields of 30 year Walmart bonds are 3.6% while General Motors, 30 year bonds have a yield of 4.9%. This is due to a. The real risk free rate is higher on General Motors' bonds b. There is a great maturity risk premium for General Motors bonds. There is greater default risk for General Motors' bonds Investors thinking there is greater inflation for the General Motors bonds All of the above are valid explanations for the differences in the bond vields c. d. e. Interest rates on government (and corporate) notes/bonds have increased dramatically in the past year especially on short term note:s This increase in government interest rates is probably due to a. Expected inflation increasing b. Default risk increasing c. Maturity risks increasing d. Liquidity risk increasing e. All of the above You invest $25,000 today and will withdraw the money in t years. Which of the following represents how much you can withdraw? a. 25,0001I(1+r) -1]r) b. 25,000 (1/1+r))/r) c. 25,000/(1+r) d. 25,000(1+r) e. Not enough information If Delta buys $100 million of additional planes for its flights today This will not affect cash as it is simply a Balance Sheet adjustment. This will be a cash inflow Revenues will increase by $100 million today This will be a cash outflow None of the above a. b. c. d. e

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