You are considering an investment in a U.S. Treasury bond but you are not sure what rate of
interest it should pay.
Assume that the real risk-free rate of interest is 1.0%; inflation is expected to
be 1.5%; the maturity risk premium is 2.5%; and, the default risk premium for AAA rated corporate
bonds is 3.5%. What rate of interest should the U.S. Treasury bond pay?
A) 5.0% B) 2.5% C) 8.5% D) 6.0%
A
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Rocky Boot Co. reported net income of $216,000 for its year ended December 31, 2012. Purchases totaled $152,000. Accountants payable balances at the beginning and end of the year were $36,000 and $33,000, respectively Beginning and ending inventory balances were $44,000 and $46,000, respectively. Assuming that all relevant information has been presented, Rocky Boot would report operating cash flows of
a. $155,000 b. $221,000 c. $211,000 d. $151,000
List seven suggestions for breaking down the barriers to global EC
What will be an ideal response?