A Treasury Bond Due in One Year Has a Yield

question 37

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 above

Distinguish between experimental and correlational research methods.

Recognize the role of internal validity in supporting causal conclusions in experiments.

Appreciate the complexity of human behavior and the rationale for manipulating more than one variable in experiments.

Understand that experiments are the research method for examining cause-and-effect relationships.

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Definitions:

Indirect Exporting

A method of entering foreign markets by selling products to intermediaries who then resell them to the final consumers in the target market.

Marketing Representative

an individual who promotes and sells products or services on behalf of a company, often aiming to increase brand awareness.

Dumping

The selling of goods in a foreign country at a price below the price charged for the same goods in the domestic market.

Less Than Fair Value

This term refers to selling goods in another country at a price lower than the normal value in the exporter's domestic market, often considered in trade disputes.