Default risk of investing

Assignment Help Financial Management

Reference no: EM131952976

What is an answer and why?

1. The type of assets traded in the money markets include :

a. corporate stocks

b. foreign currency exchange

c. consumer automobile loans.

d. short-term debt securities

2. Your sister would like to lower her default risk of investing but still want to invest in corporate bonds. She is also willing to accept a lower rate of return to have more liquidity. Which of the possible bonds would suit your sister the best?

a. BBB bond with 10 years to maturity

b. AA bond with 10 years to maturity

c. BBB perpetual bond.

d. AAA bond with 5 years to maturity

3. The new web corporation has current assets $12400 , inventories of $5000 , and a current ratio of 2.5. what is new web's acid test ratio?

a. 1.49

b. 0.49

c. 0.75

d. 1.25

Reference no: EM131952976

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