A Treasury Bond Due in One Year Has a Yield

question 81

Multiple Choice

A Treasury bond due in one year has a yield of 5.7%; a Treasury bond due in 5 years has a yield of 6.2%.A bond issued by Ford Motor Company due in 5 years has a yield of 7.5%; a bond issued by Shell Oil due in one year has a yield of 6.5%.The default risk premiums on the bonds issued by Shell and Ford, respectively, are

• A)1.0% and 1.2%.
• B)0.7% and 1.5%.
• C)1.2% and 1.0%.
• D)0.8% and 1.3%.
• E)None of the options

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Definitions:

Management Practices

The methods, strategies, and techniques employed by managers to improve efficiency and achieve organizational objectives.

High Values

Principles or standards considered to be of great importance or virtue, guiding moral judgment and behavior.

Delegating Decision-Making

The transfer of authority and responsibility for making decisions from one person or group to another, often seen as a key component of effective leadership.

Untrained Workforce

A group of employees who have not received formal instruction or skills development related to their job functions.