U4 Discussion Questions
Instructions: There are 4 discussion questions. Read and answer fully. Write a 75-100 word or more answer for each.
Discussion Question 1
o Prompt: Which should have a higher risk premium on its interest rates, a corporate bond with a Moody’s Baa rating or a corporate bond with a C rating?
Why?
o Requirement: 75-150 words
• Discussion Question 2
o Prompt: What basic principle of finance can be applied to the valuation of any investment asset?
o Requirement: 75-150 words
Discussion Question 3
o Prompt: Which relationship would you expect to exist between measures of corruption and living standards at the country level? Explain by which channel corruption might affect living standards.
o Requirement: 75-150 words
Discussion Question 4
o Prompt: Many policymakers in developing countries have proposed the implementation of a system of deposit insurance similar to the system that exists in the United States. Explain why this might create more problems than solutions in the financial system of a developing country.
o Requirement: 75-150 words
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APA
603 words