Question
Acme Coporate Bonds are curently yielding 9.75%, and you have found the following interest premiums that relate to this investment. Inflantion Premium: 1.75% Liquidity premium:
Acme Coporate Bonds are curently yielding 9.75%, and you have found the following interest premiums that relate to this investment.
Inflantion Premium: 1.75%
Liquidity premium: 0.75%
Defualt risk Premium: 1.50%
Maturity Risk Premium: 0.50%
What is the real risk free rate of return?
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ISE Analysis For Financial Management
Authors: Robert C. Higgins Professor, Jennifer Koski
13th International Edition
1265042632, 9781265042639
