Question
Koy Corp's 15 yr bond yield 12.5%. The real risk free rate is 3% inflation premium for 5 yr bonds is 1.75% The liquidity premium
Koy Corp's 15 yr bond yield 12.5%. The real risk free rate is 3% inflation premium for 5 yr bonds is 1.75%
The liquidity premium for koys bond is 0.75% vs 0 for t bonds and the maturity risk premium for all bonds is found with the formula mrp= 0.1% (t-1) where t= number of years to maturity
What is the default risk premium of koys bonds?
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Gapenskis Understanding Healthcare Financial Management
Authors: George H. Pink, Paula H. Song
8th Edition
1640551093, 978-1640551091
