A Treasury Bond Due in One Year Has a Yield

question 12

Multiple Choice

A Treasury bond due in one year has a yield of 4.3%; a Treasury bond due in 5 years has a yield of 5.06%.A bond issued by Boeing due in 5 years has a yield of 7.63%; a bond issued by Caterpillar due in one year has a yield of 7.16%.The default risk premiums on the bonds issued by Boeing and Caterpillar,respectively,are

• A)3.33% and 2.10%
• B)2.57% and 2.86%
• C)1.2% and 1.0%
• D)0.76% and 0.47%
• E)none of the above

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Definitions:

Virtual Memory

The space on the hard drive where the operating system stores data if there isn’t enough random access memory to hold all of the programs you’re currently trying to run.

Physical Memory

The amount of random access memory (RAM) that’s installed in a computer.

Video Memory

Random access memory that’s included as part of a video card.

Random Access Memory

A type of computer memory that allows data to be read and written in any order, significantly speeding up the computing process.