Question
Sandino Corporation 10 year semiannual bond is currently selling at $850, with a coupon rate of 5% and a nominal rate (YTM) of 7.12%. Given
Sandino Corporation 10 year semiannual bond is currently selling at $850, with a coupon rate of 5% and a nominal rate (YTM) of 7.12%. Given an annual maturity risk premium (MRP) of (t-1)*0.10%, the bonds liquidity premium (LP) of 0.40% and default risk premium (DRP) of 3.40%. what is the risk free rate. Round your answer to two decimal places
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Understanding Financial Risk Management
Authors: Angelo Corelli
1st Edition
0415746183, 978-0415746182
