A Treasury Bond Due in One Year Has a Yield

question 40

Multiple Choice

A Treasury bond due in one year has a yield of 4.3%; a Treasury bond due in five years has a yield of 5.06%. A bond issued by Boeing due in five 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 options are correct.

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Definitions:

Cryptic Female Choice

Cryptic female choice refers to a form of sexual selection that arises after mating, when females store and separate sperm from different males and thus bias which sperm they use to fertilize their eggs.

Sperm Competition

Sperm competition is a form of sexual selection that arises after mating, when males compete for fertilization of a female’s eggs.

Sexual Selection

A mode of natural selection where certain traits increase an individual's chances of mating and reproduction.

Onthophagus Acuminatus

A species of dung beetle, known for its role in nutrient cycling and soil aeration.