Question
NI= RI+IP+RP+LP+DP What does each variable represent and why does it affect nominal interest? If the risk-free rate of interest is 3%, and for a
NI= RI+IP+RP+LP+DP What does each variable represent and why does it affect nominal interest? If the risk-free rate of interest is 3%, and for a 5 year period, the inflation premium is to be 5%, the interest rate risk premium is .1% annually (Except for year one), the default premium is 2% and the liquidity premium is .5%. What would be the rate of a 5 year treasury and corporate notes?
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Global Finance At Risk
Authors: S. Sen
1st Edition
1349420492, 978-1349420490
