FIN 221 Study Guide - Midterm Guide: Annual Percentage Rate, Liquidity Premium, Initial Public Offering
Document Summary
Multiple choice identify the choice that best completes the statement or answers the question: assume that interest rates on 20-year treasury and corporate bonds are as follows: T-bond = 7. 72% aaa = 8. 72% a = 9. 64% bbb = 10. 18% The differences in these rates were probably caused primarily by: a) maturity risk differences. E) inflation differences: a whole lotta dough pizza (awld) trades on the nasdaq stock market. What price would you sell this stock at now if you already own stock in a whole lotta. Stock ticker bid ask awld bid-> . 50 | ask->. 00: . 50, . 50, . 00, . 75, . 00. Ask > bid always: astro investors is interested in purchasing the bonds of the jetson company. Jetson"s bonds are currently priced at ,100. 00 and have 14. 5 years to maturity. It will cost you ,000 and you will put down ,000 as a down payment. For the rest you get a 30-year 6. 25% mortgage.
