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You have been asked to estimate a riskless rate in Mexican Pesos. The Mexican government has peso-denominated bonds outstanding, with an interest rate of 15%.

You have been asked to estimate a riskless rate in Mexican Pesos. The Mexican government has peso-denominated bonds outstanding, with an interest rate of 15%. S&P has a rating of BB on these bonds, and the typical spread for a BB-rated country is 7% over a riskless rate. Estimate the peso riskless rate.Enter your answer using decimals, for instance, if you answer is 5%, enter 0.05.

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