a) given the rate info below estimate the nominal rate for aa rate corp bond, as

Question

a) given the rate info below estimate the nominal rate for aa rate corp bond, assume liquidity premuim of 6 basis points , identiify inflation risk premuim , default risk premuim, the maturity risk premium, and liquidity premuim 3 month t-bills: 4.0% 30 years treasurybonds 6.0% aa rated corp bonds 8.0 % inflation rate 2.5 b} if provided the nominal rate of intrest of 7.4 and anticipated rate of inflation of 4.5 what is real rate of intrest c} end of year a b c 1 300 400 2 300 3 300 4 300 300 600 5 300 6 300 7 300 8 300 600 calculate present value of each investment, assuming a 15% discount rate what is franks best alternative

Explanation / Answer

b. Real rate = (1.074*1.045)-1 = 12.23 % Please consider the time devoted to make this reply by rating this as 5 star. Thank u in advance. God bless u :)

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.