The default risk premium on the corporate bond

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Renfro Rentals has issued bonds that have a 10% coupon rate, payable semiannually. The bonds mature in 17 years, have a face value of $1,000, and a yield to maturity of 11%. What is the price of the bonds? Round your answer to the nearest cent.

The real risk-free rate is 3%, and inflation is expected to be 4% for the next 2 years. A 2-year Treasury security yields 8.3%. What is the maturity risk premium for the 2-year security?

A Treasury bond that matures in 10 years has a yield of 5%. A 10-year corporate bond has a yield of 8%. Assume that the liquidity premium on the corporate bond is 0.8%. What is the default risk premium on the corporate bond? Round your answer to two decimal places.

The real risk-free rate of interest is 4%. Inflation is expected to be 1% this year and 4% during the next 2 years. Assume that the maturity risk premium is zero.

What is the yield on 2-year Treasury securities? Round your answer to two decimal places. %

What is the yield on 3-year Treasury securities? Round your answer to two decimal places. %

Heath Foods's bonds have 16 years remaining to maturity. The bonds have a face value of $1,000 and a yield to maturity of 11%. They pay interest annually and have a 7% coupon rate. What is their current yield? Round your answer to two decimal places.

Reference no: EM131310038

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