Calculate the default risk premium on nikki g 10-year bonds

Assignment Help Finance Basics

Reference no: EM13301090

Nikki G's Corporation's 10-year bonds are currently yielding a return of 11.97 percent. The expected inflation premium is 3.1 percent annually and the real interest rate is expected to be 3 percent annually over the next 10 years. The liquidity risk premium on Nikki G's bonds is 1.8 percent. The maturity risk premium is 0.42 percent on 3-year securities and increases by 0.15 percent for each additional year to maturity.

Required:

Calculate the default risk premium on Nikki G's 10-year bonds. (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Reference no: EM13301090

Questions Cloud

How to calculate the activation energy of a reaction : Calculate the activation energy of a reaction if the rate constant is 0.75 s 1at25 Celsius and 11.5 s 1at 75 celsius. (the universal gas constant is 8.314J/mol K)

Product gallons sales value cost after final : Product Gallons Sales value Cost after Final - Number of gallons and round percentages to one decimal place i.e. 25.5% or .255.

Describe what is a j curve : Describe what is a J Curve? Why is it useful?

Estimate the mass of the planet : A small moon of a giant planet has an orbital period of 1.43 days and an orbital radius of 4.69 multiply.gif 105 km. determine the mass of the planet

Calculate the default risk premium on nikki g 10-year bonds : Calculate the default risk premium on Nikki G's 10-year bonds. (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

What is the condition that has to satisfy in order for the : Consider the following supergame: N firms choose prices simultaneously in each period. The discount factor is per period. Suppose firms try to collude at the monopoly price with the threat of practicing price equal to marginal cost for T periods ..

Define the rate constant for the first order reaction : The rate constant for the first order reaction below is K=3.3*10 -2 min -1 at 57 Kelvin. what is the half life for this reaction at 57 Kelvin

Compute the molecular weight of a polymer : Calculate the molecular weight of a polymer if a 100 mL solution of 6.5 grams of the polymer in toluene has an osmotic pressure of 0.044 atm at 27 celsius

Compute the period of the satellites orbit : A satellite moves in a circular orbit around Earth at a speed of 4439 m/s. Determine the period of the satellites orbit

User Account

All Pages