Thursday
April 24, 2014

Homework Help: finance

Posted by fran taylor on Friday, January 27, 2012 at 7:29pm.

You are considering an investment in a one year government debt security with a yeild od 5% or a highly liquid corporate debt security with a yeild of 6.5%. The expected inflation rate for the next year is expected to be 2.5%.
A. what would be your real rate earned on either of the tow investments?
B. what would be the default risk premium o the corporate debt security?

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Finance - You are considering two equally risky annuities, each of which pays $5...
Finance - An investment offers an expected dollar return of $800 each year for ...
Finance - Omega Health Foundation is considering buying personal computers to ...
Finance - An investment has grown to $89,000 over a 6-year period. The interest ...
finance - Wheel Industries is considering a three-year expansion project. The ...
finance - You have found three investment choices for a one year deposit: 10% ...
Finance - Assume a $4,000 investment and the following cash flows for two ...
corporate finance - A company is considering a $250 million investment in land ...
Finance - Find the future value one year from now of a $7,000 investment at a 3 ...
Finance - You are considering an investment in a one-year government debt ...

Search
Members