Ajax wants to issue a 10 year-zero coupon bond.  The bond wi…

Ajax wants to issue a 10 year-zero coupon bond.  The bond will have a face value of $1000.  The yield on 10-year government T-bonds is %.  Ajax has a rating of BBB, and you estimate the default risk premium at %.  The bonds will be privately placed, so trading will be difficult.  The liquidity premium is %.  Find the price of the bond.  Assume all yields have annual compounding.Round your answer to the nearest dollar.

Suppose the real risk-free rate is 2% and the inflation prem…

Suppose the real risk-free rate is 2% and the inflation premium is expected to be 3%. The maturity risk premium for Treasury securities is 0.1% for each year to maturity.  If Fig Corp. has a default risk premium of % and a liquidity premium of %, then calculate the interest rate on Fig’s year bonds.  Answer should be xx.x