Which of the following is considered a default-risk-free instrument?
A) A three-month Treasury bill
B) A share of stock issued by Google
C) A three-month commercial paper issued by GE
D) A ten-year bond issued by Intel
Correct Answer:
Verified
Q6: Currently, a three-year Treasury note pays 4.75%.
Q7: U.S. Treasury securities
A)are considered risk free because
Q8: The risk structure of interest rates refers
Q9: The default risk premium is
A)relevant only for
Q10: Which of the following assigns widely-followed bond
Q12: When a company whose ability to repay
Q13: Savers who are risk-averse
A)care only about expected
Q14: Because savers are generally risk-averse
A)the long-run return
Q15: The default risk premium is measured
A)by an
Q16: If the average risk premium of corporate
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