Question
The real risk free rate of interest is 1.0%. Inflation is expected to be 1.5% next year, 2.0% the following year and 3.0% thereafter. If
The real risk free rate of interest is 1.0%. Inflation is expected to be 1.5% next year, 2.0% the following year and 3.0% thereafter. If the maturity risk premium is .1%(t-1), the liquidity premium is 2% and the default risk premium is 3% , what is the interest rate on a 5 year treasury bond and a corporate bond of the same maturity?
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Mergers Acquisitions And Other Restructuring Activities
Authors: Donald DePamphilis
11th Edition
012819782X, 978-0128197820
