Question
What are some factors that can influence each of these components and how for the following: 1. Risk free rate 2. Inflation premium 3. Default
What are some factors that can influence each of these components and how for the following:
1. Risk free rate
2. Inflation premium
3. Default risk premium
4. Liquidity premium
5. Maturity risk premium
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Step: 1
1 Risk free rate There are only two major factors that can influence the Risk Free Rate ie Expected Inflation rate in economy and the relative Ease or ...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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