Why does a treasury bond offer a lower yield

Assignment Help Financial Accounting
Reference no: EM13505630

Why does a Treasury bond offer a lower yield than a corporate bond with the same time to maturity? Could a corporate bond with a different time to maturity offer a lower yield? Explain.

Reference no: EM13505630

Questions Cloud

Define the net ionic equations for the sequence of reactions : What are the net ionic equations for the sequence of reactions of caco3 that occur in a woman's stomach
Explain electrons from reduced cytochrome : Cytochrome c oxidase receives electrons from reduced cytochrome c (Cyt c red) and transmits them to molecular oxygen with the formation of water.
Calculate number of hours of direct labor used in november : Calculate the number of hours of direct labor used during November and actual manufacturing overhead costs incurred during November totaled $166, 425. Calculate the amount of over- or underapplied overhead for November.
Explain a propane gas tank to a certain number of pounds : Which quantity would be constant (temperature, volume, pressure, moles, or would none be constant) if you were to fill a propane gas tank to a certain number of pounds?
Why does a treasury bond offer a lower yield : Why does a Treasury bond offer a lower yield than a corporate bond with the same time to maturity? Could a corporate bond with a different time to maturity offer a lower yield? Explain.
Explain the role of cash and of earnings when a corporation : Explain the role of cash and of earnings when a corporation is deciding how much, if any, cash dividends to pay to common stockholders.
Calculate the increase in annual after-tax profits : Calculate the increase in annual after-tax profits if the higher transfer price of $1,250 per unit is used.
Explain 2 dimethylcyclohexanone starting with hydrocarbons : 2 dimethylcyclohexanone starting with hydrocarbons, ketones or esters of 4 carbons or less, benzaldehyde, monosubstituted cyclic ketones and any inorganic reagent.
Find the amount of heat for each process : A heat engine is based on a cycle consisting of an isobaric, an isometric and an adiabatic process. Find the amount of heat for each process

Reviews

Write a Review

Financial Accounting Questions & Answers

  Illustrate what standards apply

Write a 700- to 1,050-word paper explaining economic issues that bring concern to pricing your services and products. What ethical challenges will you face in hiring non-CPAs? Illustrate what standards apply?

  Calculate the year ending balance in retained earnings

Prepare all the required closing entries for the company at December 31. Calculate the year ending balance in retained earnings.

  Evaluate the company''s total cost of merchandise

Evaluate the company's total cost of merchandise purchased for the year and prepare a multiple-step income statement that includes separate categories for selling expenses and for general and administrative expenses.

  Calculate best-case and worst-case prices

Free Cash Flow (FCF) Forecast based on assumptions for Best and Worst Case Scenarios.Net Present Value (NPV) computation based on Cost of Capital, different Discounting Rates and Terminal Values.

  Trade for harper

Evaluate whether the Kings should keep Dawkins or trade for Harper . Imagine the trade would occur on 1st January, 20X3.

  What would be shown as an operating cash flow

If its income tax expense was $80 million, what would be shown as an operating cash flow under the direct method?

  Explain how many units must be sold each year to break even

Explain how many units must be sold each year to break even? C. How many units must be sold to make a profit of $144,000?

  Prepare a business valuation using the market value method

Prepare a business valuation for 2013 using the market value technique, the book value method, and the multiples-based techniques.

  Problem on cost-volume-profit analysis

Problem on Cost-volume-profit analysis-Compute the net present value of each of the five projects listed in the table

  What was the cost of goods manufactured for the month

The beginning work in process inventory was $20,000 and the ending work in process inventory was $11,000. What was the cost of goods manufactured for the month?

  Klingon company operates a free cafeteria for benefit of

klingon company operates a free cafeteria for benefit of its employees. budgeted and actual costs in cafeteria for last

  Question 1on april 10 abc inc enters in a swap contract for

question 1on april 10 abc inc. enters in a swap contract for 10 years with a chartered bank to turn a fixed rate on

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd