Business, 22.02.2020 05:07 baileyflemingde
You have determined the following data for a given bond: Real risk-free rate (r*) = 3%; inflation premium = 8%; default risk premium = 2%; liquidity premium = 2%; and maturity risk premium = 1%. What is the nominal risk-free rate, rRF?
a. 10%
b. 13%
c. 11%
Answers: 2
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You have determined the following data for a given bond: Real risk-free rate (r*) = 3%; inflation pr...
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