finance
stebroYou are considering an investment in a AAA-rated U.S. corporate bond but you are not sure what rate of interest it should pay. Assume that the real risk-free rate of interest is 1.0%; inflation is expected to be 1.5%; the maturity risk premium is 2.5%; and, the default risk premium for AAA rated corporate bond is 3.5%. What rate of interest should the U.S. corporate pay?
13 years ago
3
Answer(1)![blurred-text]()
Purchase the answer to view it
NOT RATED
Bids(0)
other Questions(10)
- Which political institution in marlyand would serve the same purpose as the USA congress
- Shakespeare combines elements of realism and the supernatural in characters and action in this play. Do you think Shakespeare’s blurring...
- 2x^2-6x=0
- State whether the following is true sometimes, always, or never. x y = y x (for any real numbers x & y such...
- 11 Precalculus Questions
- Finite Math
- n wild flowers long stems blue flowers are dominant over short stem yellow flowers. show the cross between two heterozygous...
- Jo eats 2,200 calories per day. She eats 450 calories at breakfast and twice as much at lunch. If she...
- plot summary fro jabberwocky
- Joe bought 3 candy bars that cost 75 cents each. What is his total bill if the sales tax was...
