Question
The real rate of interest has been estimated to be 4 percent, and the expected long-term annual inflation rate is 5 percent. Round your answers
The real rate of interest has been estimated to be 4 percent, and the expected long-term annual inflation rate is 5 percent. Round your answers to the nearest whole number. Show work on excel please
What is the current risk-free rate of return on 1-year Treasury bonds? %
If the yield on 10-year U.S. Treasury bonds is 12 percent, what is the maturity risk premium between a 10-year bond and a 1-year bond? %
If Delta bonds, scheduled to mature in 10 years, currently sell to yield 14 percent, what is the default risk premium on these bonds? %
If investors in the common stock of Delta require a 15 percent rate of return, what is the seniority risk premium on Deltas common stock?
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