Question
1). Find the current yield on a U.S. Treasury instrument that you feel represents the risk-free asset for a long-horizon project analysis. You may get
1). Find the current yield on a U.S. Treasury instrument that you feel represents the risk-free asset for a long-horizon project analysis.
You may get use one of the Treasury constant maturities from the website below:
https://www.federalreserve.gov/releases/h15/
a.Which government bond do you choose to use? Why do you choose this security?b.What is the risk-free rate (current yield)?
2). Get an estimate of the Market Risk Premium from the web site below (use implied equity premium):
http://pages.stern.nyu.edu/~adamodar/
I need help with identifying which treasury yield is the best one to choose - I am not sure if its better to use a 10 or 20 year one for this particular company.
For the second one, I just need help identifying if the implied equity premium on the website (listed as 5.29%) is the same as the market risk premium
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