Keys Corporation's 5-Year Bonds Yield 6

question 1

Multiple Choice

Keys Corporation's 5-year bonds yield 6.20% and 5-year T-bonds yield 4.40%.The real risk-free rate is r* = 2.5%,the inflation premium for 5-year bonds is IP = 1.50%,the liquidity premium for Keys' bonds is LP = 0.5% versus zero for T-bonds,and the maturity risk premium for all bonds is found with the formula MRP = (t − 1) × 0.1%,where t = number of years to maturity.What is the default risk premium (DRP) on Keys' bonds?

• A)1.17%
• B)1.30%
• C)1.43%
• D)1.57%
• E)1.73%

Recognize psychological and economic needs influencing customer purchases.

Understand the importance of emphasizing product benefits in sales presentations.

Identify specific sales strategies, like the SELL Sequence and FAB technique, for effective sales presentations.

Discern the different levels of consumer need awareness and appropriate sales techniques for each.

---

Definitions:

Interstate Land Sales Full Disclosure Act

A federal law that aims to prevent fraudulent marketing practices in the sale of land and to ensure that buyers receive adequate information before purchasing.

Unimproved Land

Land that remains in its natural state, without any man-made additions or changes such as buildings or other structures.

Common Promotional Plan

A marketing strategy that employs varied promotional tools and resources to reach a broad audience effectively.

Consumer Transactions

Deals or agreements carried out between sellers and purchasers, specifically involving the acquisition of goods or services for personal, family, or household use.