Calculate the gross profit that an underwriter would make

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1-Calculate the amount of excess reserve of a bank with 15,000,000 of reserve and 100.000,000 of deposits if the reserve requirement is 10%

2. Suppose the yield on a 30-year corporate bond rated Aaa is 9.50 percent and the yield on a 30-year Treasury bond is 9.00 percent. What is the default risk premium? Would you expect a higher or lower default risk premium on an A-rated bond?

3. Calculate the gross profit that an underwriter would make if it sold $20 million worth of bonds at par (face value) and paid the firm that sold the bonds 98.75% of par

Reference no: EM13223431

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