An analyst notes that the yield on a 10-year corporate bond is 7.32% and the yield on a 10-year government bond is 5.60%. The relative yield spread and yield ratio, respectively, for the two bonds are
A. 30.7% 0.68
B. 30.7% 1.31
C. 46.4% 0.68
查看答案
All other things being equal, which one of the following bonds has the greatest volatility?
A. 10-year,8% coupon.
B. 15-year,10% coupon.
C. 15-year,8% coupon.
A companys shares are currently trading at $20 per share and its P/E ratio is 28. If it borrows money to repurchase shares at a after-tax cost of debt of 6 percent, its EPS will most likely to:
A. Increase.
B. Decrease.
C. Remainthesame.
Two manufacturing companies operating in the same industry have different net fixed asset turnover ratios. The difference most likely occurs because the company with the:
A. Higherratiowasoperatingwitholderequipmentthathadalowcostbasis.
B. Higherratiorecentlyinvestedasubstantialamountinnewplantandequipment.
C. Lowerratiowasmoreefficientinmanaginginventory.
On January 1st of the year, an investor purchases $100,000 in par value of a new Treasury Inflation Protection Security (TIPS) issue that has a 2.5% coupon rate. The annual rate of inflation over
A. $1,275
B. $1,294
C. $1,339