Question
Given the following information about the economic activity and a company's bonds: risk-free rate=1.8% one year t-billrate: 1.61% default riskpremium = 1.81% . liquidity
Given the following information about the economic activity and a company's bonds: risk-free rate=1.8% one year t-billrate: 1.61% default riskpremium = 1.81% . liquidity riskpremium = 1.17% . maturity riskpremium = 1.74% What would be the fair interest rate in percentage for a company's 30-year bond?
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