Question
please help me to answer these questions I need them today 1) use the following information to draw securities market line return on the market=12%
please help me to answer these questions I need them today
1) use the following information to draw securities market line
return on the market=12%
risk fee rate of return = 3%
2) you considering an investment in 30 year bounds issued by moore corporation. the bound have no special covenants. the wall street Journal reports that one year T- bills are currently earning 3.25% your broker determined the following information about economic activity and moore corporation's bonds
- real risk free rate=2.25%
- default risk premium=1.15%
- liquidity risk premium=0.50%
Maturity risk premium= 1.75%
* compute the inflaction premium?
* what is the fair intrest rate on Moore corporation 30 year bounds?
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