Calculate default risk premium

Assignment Help Financial Management

Reference no: EM131580816

Nikki G's Corporation's 10-year bonds are currently yielding a return of 6.65 percent. The expected inflation premium is 1.05 percent annually and the real interest rate is expected to be 3.30 percent annually over the next 10 years. The liquidity risk premium on Nikki G's bonds is 0.15 percent. The maturity risk premium is 0.10 percent on 4-year securities and increases by 0.03 percent for each additional year to maturity. Calculate the default risk premium on Nikki G's 10-year bonds.

Reference no: EM131580816

Questions Cloud

Biases that have interfered with your career : Do you feel that you have been treated differently in your work place because you are a woman?

Analyze the ethical considerations that apply : Analyze the ethical considerations that apply. Describe the organization's current hiring needs and projected hiring needs for the coming year.

The ftc and product advertising : ?The power of advertising is in its persuasive influence, and this influence can take several different forms. Using your textbook or Internet

Forms of integrated marketing communications : Choose Mahindra & Mahindra as an organizational brand and discuss how this firm can uses various forms of integrated marketing communications in communicating

Calculate default risk premium : Nikki G's Corporation's 10-year bonds are currently yielding a return of 6.65 percent. Calculate the default risk premium on Nikki G's 10-year bonds.

Deadly flaws of carrots and sticks in action : Describe a time when you have seen one of the deadly flaws of carrots and sticks in action. What lessons can you learn from that experience?

Customers differentiated by value : customer oriented company would rank all of its customers differentiated by value or differentiate all of its customers by need?

Describe at least three federal disaster assistance programs : Describe at least three federal disaster assistance programs or sources (such as federal grants) you would anticipate using for your disaster event.

Describe various types of enterprise wide accounting systems : Describe the various types of enterprise wide accounting systems used in organizations. Discuss the steps involved in the development process

User Account

All Pages