A Treasury Bond Due in One Year Has a Yield

question 55

Multiple Choice

A Treasury bond due in one year has a yield of 6.3% while a Treasury bond due in 5 years has a yield of 8.8%. A bond due in 5 years issued by High Country Marketing Corporation has a yield of 9.6% while a bond due in one year issued by High Country Marketing Corporation has a yield of 6.8%. The default risk premiums on the one-year and 5-year bonds issued by High Country Marketing Corp. are respectively ________ and ________.

• A)0.4%, 0.3%
• B)0.4%, 0.5%
• C)0.5%, 0.5%
• D)0.5%, 0.8%

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Definitions:

Target Market

A specific group of consumers at whom a company aims its products and services, characterized by similar demographic, psychographic, or behavioral traits.

Marketing Efforts

Various activities undertaken by companies to promote and sell their products or services to the target audience.

Market Segment

A subgroup of people or organizations within a broader market that share similar characteristics, needs, or purchasing behaviors.

Relay for Life

A fundraising event organized by the American Cancer Society, aimed at supporting cancer research and patients.