A treasury bond due in one year has a yield of 2.40% while a treasury bond due in 5 years has a yield of 4.50%. A bond due in one year issued by High Country Marketing Corporation has a yield of 5.06%...


A treasury bond due in one year has a yield of 2.40% while a treasury bond due in 5 years has a yield of 4.50%.  A bond due in one year issued by High Country Marketing Corporation has a yield of 5.06% while a bond due in 5 years issued by High Country Marketing Corporation has a yield of 6.54%.  The default risk premiums on the one-year and 5-year bonds issued by High Country Marketing Corp. are respectively __________ and __________.


Group of answer choices


A. 2.66% and 2.04%



B. 3.32% and 2.88%



C. 2.89% and 2.47%



D. 3.25% and 2.83%



E. 2.71% and 2.29%




Jun 01, 2022
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