What does the article mean by comparable treasury

Assignment Help Financial Management

Reference no: EM131886431

Bev NY, the maker of Budweiser and other beers, sold debt of varying maturities. According to an article in the Wall Street Journal...

Assumptions: The three-year notes priced with a risk premium of 0.50 percentage point over comparable Treasury; the five-year notes at a spread of 0.80 percentage point to Treasury, the 10-year notes at 1.05 percentage points over Treasury.

1. What does the article mean by "comparable" Treasury?

2. What does the article mean by a "risk premium"?

3. Why does the risk premium increase the longer the maturity of Anheuser-Busch debt? Please Explain.

Reference no: EM131886431

Questions Cloud

What weight should you use for debt in the computation : What weight should you use for debt in the computation of FarCry’s WACC?

Is whale taxed on the transfer of its stock to minnow : Is Whale taxed on the transfer of its stock to Minnow? Explain briefly. Is minnow taxed on receipt of the Whale stock? Explain briefly

Long position in stock : A long position in a stock is all of the following except:

Between yields on us treasury bonds and municipal bonds : What impact do you think this reduction had on the difference between yields on U.S Treasury bonds and municipal bonds?

What does the article mean by comparable treasury : What does the article mean by "comparable" Treasury? What does the article mean by a "risk premium"?

Begin paying annual dividends : NU YU announced today that it will begin paying annual dividends.

Are bonds prices on the long-end of the yield curve falling : Are bonds prices on the long-end of the yield curve falling or rising? Why?

Accounting-cash and financial break-even quantities : Calculate the accounting, cash, and financial break-even quantities.

Welding business and management style : Working capital management. Need for accurate cash flow forecasting. Discuss which would be the top two for a welding business / management style.

User Account

All Pages