Which factor(s) lead to the difference of the interest between T-bill and a short-term corporate bond? Group of answer choices a)Inflation rate b)Default risk and maturity risk c)Maturity risk d)Default risk
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Which factor(s) lead to the difference of the interest between T-bill and a short-term corporate bond?
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- Which factor(s) lead to the difference of the interest between T-bill and a short-term corporate bond? Group of answer choices Inflation rate Maturity risk Default risk and maturity risk Default riskDoes the interest rate on a T-bond include a default risk premium? Explain.Default risk on bonds can be evaluated by using:A. financial analysisB. bond ratingsC. estimates of potential losses on bondsD. a and b
- 2. Term structure premium, an inflation of bond and bond default premium are included in A. risk factors B. premium factors C. bond buying factors D. multi model) is a measure of the sensitivity of the price of a bond or other debt instrument to a change in interest rates. O Convexity Maturity Duration ImmunizationWhich of the following types of debt securities protect investors against interest rate risk? a. extendible notes b. floating rate bonds c. floating rate bonds and extendible notes d. original issue deep discount bonds
- Nominal interest rate of a corporate bond includes all of the following components EXCEPT _____. Group of answer choices a. real risk-free interest rate b. expected inflation c. unexpected inflation d. credit risk premiumWhich of the following is not a way on how to determine the initial measurement of a bond on its issuance? market quotation future value of present cash flows issuance price less issuance cost present value of future cash flowsWhat is the excess of the issue price of bonds over their face amount called? premium discount security face
- Bond ratings primarily reflect which of the following? Reinvestment risk, Default risk , Interest rate risk, Yield curve riskWhich of the following does not impact the calculation ofthe cash interest payments to be made to bondholders?a. Face value of the bond.b. Stated interest rate.c. Market interest rate.d. The length of time between payments.which of the below does not qualify a bond ? a. Time to maturity b. Par Value c. Coupon rate d. Yield to Maturity e. Current yield