Calculate the default risk premium on nikkigs ten year bonds

Assignment Help Financial Management

Reference no: EM131461275

NikkiG’s Corporation’s 10-year bonds are currently yielding a return of 6.80 percent. The expected inflation premium is 1.20 percent annually and the real risk-free rate is expected to be 2.10 percent annually over the next ten years. The liquidity risk premium on NikkiG’s bonds is 0.30 percent. The maturity risk premium is 0.15 percent on 3-year securities and increases by 0.07 percent for each additional year to maturity. Calculate the default risk premium on NikkiG’s 10-year bonds.

Reference no: EM131461275

Questions Cloud

External sources to fund the expected growth : What amount of additional funds (AFN) will worldwide need from external sources to fund the expected growth? What does the AFN show?

Define customer retention strategies : RequirementStudent should select organizations (which you have access to or from internet )and work through the following questions relating to customer.

Series of body paragraphs : Respond to the following questions in a cohesive essay, with an introduction, a series of body paragraphs, and a conclusion.

How did feudalism impact japan and europe : Explain the difference and similarities of Japanese and European feudalism . how did feudalism impact Japan and europe ?

Calculate the default risk premium on nikkigs ten year bonds : Calculate the default risk premium on NikkiG’s 10-year bonds.

What concerns were expressed by lieutenant whitman : HTY/SSC 110:Why did the massacre of the buffalo herds precipitate the end of life for the Plains tribes as they knew it?

Expectations theory of term structure of interest rates hold : f the unbiased expectations theory of the term structure of interest rates holds,

Idea of the japanese situation during wwii : You have some idea of the Japanese situation during WWII? How do you explain this episode where does this fit within the context of race relations?

Explain the major benefits for the individuals and society : Describe the influence and effects of Artificial Intelligence on domain. Explain the major benefits for the individuals and society that AI has on each domain.

User Account

All Pages