You have determined the following data for a given bond: Real risk-free rate (r*) = 3%; inflation premium = 8%; default risk premium = 2%; liquidity premium = 2%; and maturity risk premium = 1%. What is the nominal risk-free rate, rRF?
a. 10%
b. 13%
c. 11%
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “You have determined the following data for a given bond: Real risk-free rate (r*) = 3%; inflation premium = 8%; default risk premium = 2%; ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Drag each description to the correct location on the chart. Determine which direction a nation's PPC will shift as a result of these major events.
Answers (1)
An investment offers a total return of 13.8 percent over the coming year. You believe the total real return will be only 9.4 percent. What do you believe the exact inflation rate will be for the next year?
Answers (1)
When mp3 players emerged and cassette players declined in popularity, what type, or types, of unemployment were created?
No Answers
What does the investment component of GDP measure? a. spending on domestically produced goods by foreign buyers b. spending on goods to be used in future production c. spending by government agencies on goods and services d.
Answers (1)
To which type of system the "Analytical Power" software belongs? * DSS ESS MIS TPS
Answers (1)
New Questions in Business
Your organization is launching a project which will include an investment of $2,000,000. The product from the project is forecasted to create revenues of $500,000 in the first year after the end of the project and of $840,000 in each of the two
Answers (1)
ts sold ... 10,000 9,000 Sales revenue ... $120,000 $103,500 Variable manufacturing cost ... 40,000 36,000 Fixed manufacturing cost ... 20,000 20,000 Variable selling and administrative cost ... 10,000 9,000 Fixed selling and administrative cost ...
Answers (1)
Credit cards should be used for A. anything you want. B. things you can't afford. C. budgeted expenses you need to pay over time. D. wants rather than needs
Answers (1)
Ajith running an internet cafe. Identify the economic activity mentioned here
Answers (1)
Black Cable Company, an accrual basis taxpayer, allows its customers to pay by the year in advance ($600 per year) or two years in advance ($960).
Answers (1)