1 the probability distribution of a less risky expected, Ask an Expert

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1. The probability distribution of a less risky expected return is more peaked than that of a riskier return. What shape would the probability distribution be for (a) completely certain returns and (b) completely uncertain returns?

2. A bank is going to issue $5,000,000 in 10-year per value bonds that pay a 6% annual coupon. The bank must pay 0.5% of the face value floatation costs. What is the bank’s effective cost of borrowing?

5.9%

6.5%

6.3%

6.1%

6.7%

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Financial Management, Finance

Category:- Financial Management
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