1)
Company X is in trouble and might face bankruptcy within the next three years. It needs a loan to survive. In order for an investor to give Company X a loan, that investor would likely charge a _______________ interest rate, hoping for a ______________ rate of return.
A. high; high
B. low;high
C. low; low
D. high; low
2)
What key assumption underlies the pure expectations theory?
A. That Treasury Bonds have no maturity risk premiums.
B. That Treasury Bonds have no liquidity risk premiums.
C. That Treasury Bonds have no inflation risk premiums.
D. That Treasury Bonds have no default risk premiums.
3) Company X is in trouble and might face bankruptcy within the next three years. It needs a loan to survive. In order for an investor to give Company X a loan, that investor would likely charge a _______________ interest rate, hoping for a ______________ rate of return.
A. high; high
B. low;high
C. low; low
D. high; low
1)
Company X is in trouble and might face bankruptcy within the next three years. It needs a loan to survive. In order for an investor to give Company X a loan, that investor would likely charge a _______________ interest rate, hoping for a ______________ rate of return.
A. | high; high | |
B. | low;high | |
C. | low; low | |
D. | high; low |
2)
What key assumption underlies the pure expectations theory?
A. | That Treasury Bonds have no maturity risk premiums. | |
B. | That Treasury Bonds have no liquidity risk premiums. | |
C. | That Treasury Bonds have no inflation risk premiums. | |
D. | That Treasury Bonds have no default risk premiums. |
3) Company X is in trouble and might face bankruptcy within the next three years. It needs a loan to survive. In order for an investor to give Company X a loan, that investor would likely charge a _______________ interest rate, hoping for a ______________ rate of return.
A. | high; high | |
B. | low;high | |
C. | low; low | |
D. | high; low |
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