Currently, a Three-Month Treasury Bill Pays 5% Interest and a Ten-Year

question 92

Multiple Choice

Currently, a three-month Treasury bill pays 5% interest and a ten-year Treasury bond pays 4.7% interest. What is the risk premium of the typical A-rated corporate bond that pays 5.5% interest?

• A)0.5%
• B)0.8%
• C)5.5%
• D)1.17

---

Definitions:

Computer-assisted Conference

A meeting or conference in which participants use computer systems to facilitate communication and information exchange.

Video Conference

A technology that allows users in different locations to hold face-to-face meetings without having to move to a single location.

Audio Conference

A virtual meeting in which participants connect and communicate via an audio-only platform, typically through telephone or computer.

Live Images

Real-time visuals or photographs captured and displayed at the moment they are taken, without any significant delay.