Question
The risk free rate is .60%. An investment's risk premiums are the following: Inflation = 2.00% Default = 2.38% Liquidity = 4.44% Special Covenants =
The risk free rate is .60%. An investment's risk premiums are the following: Inflation = 2.00% Default = 2.38% Liquidity = 4.44% Special Covenants = 0% Maturity = 3.16% What is the investment's nominal rate? Group of answer choices 2.60% 11.98% 12.58% -11.38%
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Public Finance
Authors: Harvey S Rosen, Ted Gayer
9th International Edition
0071267883, 9780071267885
