A Treasury Bond Due in One Year Has a Yield

question 18

Multiple Choice

A Treasury bond due in one year has a yield of 6.2%; a Treasury bond due in five years has a yield of 6.7%.A bond issued by Xerox due in five years has a yield of 7.9%; a bond issued by Exxon due in one year has a yield of 7.2%.The default risk premiums on the bonds issued by Exxon and Xerox, respectively, are

• A)1.0% and 1.2%.
• B)0.5% and.7%.
• C)1.2% and 1.0%.
• D)0.7% and 0.5%.

---

Definitions:

Slavery

A system in which individuals are owned by others, deprived of personal freedom and compelled to perform labor or services.

Political Philosophers

Thinkers and scholars who study questions about politics, including the nature of justice, the relationship between government and the governed, and the organization of societies.

Founders

Individuals credited with establishing an important institution or entity, often referring to the framers of the United States Constitution.

Rousseau

Jean-Jacques Rousseau, an 18th-century philosopher, writer, and composer of Geneva, who influenced the progress of the Enlightenment throughout Europe, with works on political philosophy and morality.