Question
If you expect the inflation premium to be 2%, the default risk premium to be 1% and the real interest rate to be 4%, what
If you expect the inflation premium to be 2%, the default risk premium to be 1% and the real interest rate to be 4%, what interest would you expect to observe in the marketplace under the simplest form of market interest rates? Which of the following is the correct answer?
| 3% | ||
| 5% | ||
| 11% | ||
| 13% |
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Handbook On Corporate Governance In Financial Institutions
Authors: Christine A. Mallin
1st Edition
1784711780, 978-1784711788
