A Treasury Bond Due in One Year Has a Yield

question 15

Multiple Choice

A Treasury bond due in one year has a yield of 4.6%; a Treasury bond due in five years has a yield of 5.6%.A bond issued by Lucent Technologies due in five years has a yield of 8.9%; a bond issued by Exxon due in one year has a yield of 6.2%.The default risk premiums on the bonds issued by Exxon and Lucent Technologies, respectively, are

• A)1.6% and 3.3%.
• B)0.5% and 0.7%.
• C)3.3% and 1.6%.
• D)0.7% and 0.5%.

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Definitions:

To Persuade

The act of convincing someone to do or believe something through reasoning or the use of temptation.

Promotional Objective

The specific goals a company intends to achieve through its promotional activities, such as increasing brand awareness or boosting sales.

Product Life Cycle

The stages a product goes through from introduction to the market, through growth and maturity, and eventually into decline.

Decline

A decrease in the value, quantity, quality, or strength of something, often used in economic contexts to describe the downturn in markets, sales, or production.