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?
Get 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 there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Monopolistically competitive markets are characterized by a large number of firms A economies of scale B standardized products C mutual interdependence D positive economic profit in the long run
Answers (1)
Healthcare costs have risen faster than overall inflation. a. True b. False
Answers (1)
The demand for silver decreases, other things equal, when
Answers (1)
The amount debited to wages expense when a payroll is recorded is the
Answers (1)
What is the majority of our federal budget devoted to? (What category makes up most of the spending) Contractionary Mandatory Fiscally Monetarily O Discretionary
Answers (1)
New Questions in Business
If a series of events results in a decrease in investments in the US businesses, what is the result on the US economy? A. Contraction B. Expansion C. Peak D. Trough
Answers (1)
Information is stored in what type of object in a database? A. Report B. Query C. Form D. Table
Answers (1)
Taryn, who was sexually assaulted in a parking lot, experiences frequent nightmares and has withdrawn from her family and friends. Since the attack, she has difficulty sleeping and can no longer hold down a job.
Answers (1)
Robert Bryan, Jr., earns $400 per week plus 3% of sales in excess of $7,000. If Robert sells $21,000, how much are his weekly earnings?
Answers (1)
In the United States, the labor share of national income has significantly declined since its peak in 1970. See the section 3-2 in the text for additional information. Offer your explanation for this trend.
Answers (1)