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You are trying to estimate the risk free rate for Peru. Suppose you don't trust the yields on Peruvian C-bonds and want to use
You are trying to estimate the risk free rate for Peru. Suppose you don't trust the yields on Peruvian C-bonds and want to use another approach which relies on the US risk free rate and scales it up by the ration of inflation rates in Peru and US. Use the answer from question 1 as the US risk free rate. The US inflation rate is 0.62%; in Peru it is 1.87%. What is your estimate of the Peruvian risk free rate?
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Assuming the US RiskFree Rate from question 1 was 10 US Infla...
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Real Estate Finance and Investments
Authors: William Brueggeman, Jeffrey Fisher
14th edition
73377333, 73377339, 978-0073377339
