Untitled Section 1 point A corporation is planning to sell its 90-day commercial paper to investors offering an 8.4 percent yield. If the three-month T-bill's annualized rate is 7 percent, the default risk premium is estimated to be 0.6 percent and there is a 0.4 percent tax adjustment, what is the appropriate liquidity premium? Your answer 1 point Since the aggregate demand for loanable funds is the sum of the quantities demanded by the separate sectors, and since most of these sectors are likely to demand a larger quantity of funds at lower interest rates (other things being equal), the aggregate demand for loanable funds is positively related to interest rates at any point in time. True O False 1 point Suppose that Treasury bills are currently paying 11 percent and the expected inflation is 4 percent. What is the real interest rate? * Your answer Page 7 of 8 Back Next Clear form Never submit passwords through Google Forms. This form was created inside of BRAC UNIVERSITY. Report Abuse Google Forms