Unbiased Expectations Theory One-year Treasury bills currently eam 4.70 percent. You expect that one year from now, one-year Treasury bill rates will increase to 4.85 percent. If the unbiased expectations theory is correct, what should the current rate be on two-year Treasury securities? Muitiple Choice 47750% 4.8500% 95500% 47000% Determinants of Interest Rate for Individual Securities A Corporation's 10-year bonds have an equilibrium rate of return is 10.00 percent. For all securities, the inflation risk premium is 1.57 percent and the real interest rate is 3.07 percent. The security's liquidity risk premium is 22 percent and maturity risk premium is 77 percent. The security has no special covenants. What is the bond's default risk premium? Multiple Choice 4.37% 12.49% 5.63% 200% Taxable Equivalent Yield What's the taxable equivalent yield on a municipal bond with o yield to maturity of 4.8 percent for an investor in the 15 percent marginal tax bracket? Note: Round your answer to 2 decimal places. Multiple Choice 72% 32003 4.80% 5.65% TIPS Interest and Par Value A 2.50 percent TPPS has an original reference CPI of 171.4. If the current CPI is 206.7, what is the current interest payment and par value of the TIPS? Assume semi-annual interest payments and $1,000 par value. (Round your answer to 2 decimal places) Multiple Choice: $5.95,$1,000, respectively $15.07,51,205.95, respectively $5,95,51,205,95, respectively $15.07,$1,000, respectively Buying Stock with a Market Order You would like to buy shares of Ralph Lauren (RL). The current bid and ask quotes are $85.24 and $85.42, respectively. You place a market buy-order for 400 shares that executes at these quoted prices. How much money did it cost to buy these shares? Multiple Cholce $34368 568,264 $72 $34.096 P/E Ratio and Stock Price International Business Machines (IBM) has earnings per share of $7.45 and a P/E ratio of 15.31, What is the stock price? Multiple Choice $,49 $11406 $2.06 $45.52