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You considering an investment in 30-year issued by a corporation. The bonds have no special covenants, The wall street journal reports that 1 year T-bills

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You considering an investment in 30-year issued by a corporation. The bonds have no special covenants, The wall street journal reports that 1 year T-bills are correctly earning 3.50 percent. Your broker has determined the following information about economic activity and the corporation bonds: Real interest rate = 2.50% Default risk premium = 1.75% Liquidity risk premium = 0.70% Maturity risk premium = 1.50%. What is the inflation premium? What is the fair interest rate on the corporation's 30-year bonds? 1% and 1.49%, respectively 1% and 6.45%, respectively 1% and 7.45%, respectively 3.50% and 9.95%, respectively. Rank the following three stocks by their risk return relationship, best to worst. Rail haul has an average return of 10 percent and standard deviation of 15 percent. The average return and standard deviation of idol staff are 15 percent and 25 percent; and of power R Us are 12 percent and 35 percent. Rail haul, Idol staff, Power-R-Us Idol staff Power-R-Us Rail haul Power-R-Us Idol staff Rail haul Idol staff Rail haul Power-R-Us. Rank the following three stocks by their risk return relationship, best to worst. Rail haul has an average return of 10 percent and standard deviation of 19 percent. The average return and standard deviation of idol staff are 12 percent and 22 percent; and of power R Us are 11 percent and 25 percent Idol staff Rail haul Power-R-Us Rail haul, Idol staff, Power-R-Us Idol staff Power-R-Us Rail haul Power-R-Us Rail haul Idol staff. Which of the following are main issuers of bonds? US Treasury bonds Corporate bonds Municipal bonds All of these

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