1-year Treasury bill yield is 3.5%. 10-year Treasury bond yield is 4.5%.  The expected rate of inflation embedded in both the Treasury bill and bond is 2.0%.  What is the maturity risk premium embedded in the 10-year Treasury bond?

Your bank account pays a 5% nominal rate of interest. The interest is compounded quarterly. Which of the following statements is CORRECT?  

The standard deviation of returns of stock A is 25%, with an expected return of 15%. This means 

Dakota Mining has a 15-year maturity, $1000 par value bonds with a 9% annual coupon rate. Interest is paid semi-annually. The bond sells for $1200 and has a yield of 6.84%.  What is the capital gains yield of this bond?  

Liquidity risk premium of a bond

Your bank account pays a 5% nominal rate of interest. The interest is compounded quarterly. Which of the following statements is CORRECT?  

Dan has $25,000 now. How much would he have after 10 years if he leaves it invested at 8% with annual compounding?

Jim is considering buying an SUV with a list price of $45,000. He plans to make a down payment of $5,000 and borrow the rest. The interest rate of a 5-year auto loan is 3% per year. How much will he have to pay as a monthly auto payment?

Dakota Mining has a 15-year maturity, $1000 par value bonds with a 9% annual coupon rate. Interest is paid semi-annually. The bond sells for $1200 and has a yield of 6.84%.  What is the capital gains yield of this bond?  

The greater the amount of financial leverage a firm uses, the greater the _______, all other things being equal.