Keys Corporation's 5-year bonds yield 5.10% and 5-year T-bonds yield 4.40%. The real risk-

free rate is r* = 2.5%, the inflation premium for 5-year bonds is IP= 1.50%, the liquidity

premium for Keys' bonds is LP = 0.5% versus zero for T-bonds, and the maturity risk

premium for all bonds is found with the formula MRP=(t-1) x 0.1%, where t = number of

years to maturity. What is the default risk premium (DRP) on Keys' bonds?

.20

Explanation:

=> r(corp) = rf + ip + Ip + drp + mrp , so 5.10% = 2.50% + 1.50% + 0.50% + drp + [(5-1) * 0.1]%, now solving the equation for drp, we get = 5.10 - 2.50 -1.50 -0.50 - 0.4 = 0.20%

This fossil evidence provides support for the idea that (a) modern organisms have evolved from earlier species.

Explanation:

Fossil Evidence: Fossils are evidence or clues that have been left behind by living things and are found by archaeologists. They are tools that are helpful for understanding the diverse groups of organisms that have lived in our planet at one time or another.

we define fossil as any preserved evidence of an organism.