is there anything wrong with the following scenario? explain why or why not.
Bond issue XYZ rated BB: 300 basis points
Bond issue ABC rated C: 280 basis points
Yes the scenario is wrong.
A lower rated bond, (C is lower rated than BB) should have higher credit spread. But here we see lower rated bond Bond C has lower credit spread.
is there anything wrong with the following scenario? explain why or why not. Bond issue XYZ...
What, if anything, is wrong with the following student's contention? If something is wrong, explain what it is and how to correct it. If nothing is wrong, explain why the contention is legitimate. An object moving with a constant speed cannot have a constant acceleration.
Are charlie and darnell right or wrong, why? Explain. 9.1 Consider the following conversation between Darnell and Charlie: Charlie: The eigenstates, or eigenvectors, of S, (also called 0) are orthogonal to the eigen- states of S. (also called o.). Darnell: I disagree. However, the different eigenstates of S, are orthogonal to one another In fact, the orthogonal eigenstates of S, form one basis for the vector space for the spin degrees of freedom and the orthogonal eigenstates of S. form...
What, if anything, is wrong with each of the following structural representations of BrCl3? (Only the lone pairs on the central atom are shown.) A)nothing is wrong B)too many electrons about the central atom C)too few electrons about the central atom D)electrons in wrong locations A)nothing is wrong B)too many electrons about the central atom C)too few electrons about the central atom D)electrons in wrong locations A)nothing is wrong B)too many electrons about the central atom C)too few electrons about...
Indicate which bond in the following pairs of bonds is likely to bear the higher interest rate (yield) and state why. If there is no general reason for a difference, indicate that they would be the same. a. A corporate bond rated Aaa or a municipal bond rated Aaa b. a municipal bond rated Baa or a municipal bond rate Aa c. A general obligation bond issued by a city or a revenue bond issued by a city d. a...
the following scenario: ABC company pays federal income taxes at a rate of 35% on taxable income. Compute the company’s annual after-tax cost of borrowing on an 8%, $5 million bond issue.
What, if anything, is wrong with each of the following structural representations of PCIg? (Only the lone pairs on the central atom are shown.) CI too many electrons about the central atom CI ... --cí C too many electrons about the central atom nothing is wrong Submit Answer 011-ci ĊI Incorrect. Tries 1/99 Previous Tries what that
c++ What is wrong with the following code segment? Fix the error and explain why its wrong. int* m[3]; for(int i = 0; i < 3; i++) m[i] = new int[4]; delete [] m;
8. Consider the following Scenario Analysis: Scenario Probability Stock Return Bond Return Recession 0.2 - 4% +12% Normal Economy 0.6 +12% +8% Strong Economy 0.2 +20% +5% Assume you have a portfolio that is weighted 40% in stocks and 60% in bonds. a) What are the expected rate of return and standard deviation of the portfolio? (12 points) b) Please explain BRIEFLY in words whether a rational investor would prefer to invest in the portfolio, in stocks only, or in...
The JG Investment Bank is about to issue a new series of 10 year bonds. The bonds will have a $1000 face value and will be rated AA by a respected Bond Rating Agency. Currently, the yield to maturity on AA rated bonds is 260 basis points above the yield on similar maturity government bonds. The bonds will make annual coupon payments. a) If the YTM on 10 year government bonds is 2.6% , what coupon rate should JG choose...
For each of the following, explain what is wrong and why. a) If b 1 = 5 in a logistic regression analysis with one explanatory variable, we estimate that the probability of an event is multiplied by 5 when the value of the explanatory variable increases by one unit. b) The intercept b 0 is equal to the odds of an event when x = 0 . c) The odds of an event are 1 minus the probability of the...