Find the nominal interest rate for a debt security

Assignment Help Finance Basics
Reference no: EM13154392

find the nominal interest rate for a debt security given the following information: real rate = 2%, liquidity premiun = 2%, defalult risk premium = 4%, maturity risk premium = 3%, and the inflation premium = 3%  

Reference no: EM13154392

Questions Cloud

Average accounting return, and profitability index : Evaluate the following investment criteria: NPV, IRR, Payback Period, Discounted Payback Period, Average Accounting Return, and Profitability Index. Show both the result and the Excel formula you used to obtain the result. Discuss whether you would o..
Calculate each project-s expected return and variance : Calculate each project's expected return, variance, and standard deviation. Rank the projects on the basis of (1) expected return and (2) risk. Which project would you choose?
How many liters of oxygen collected over h2o : How many liters of oxygen collected over H2O and measured at 27 degrees Celsius and 745.0 mm Hg can be prepared by decomposing 4.421 grams of gold (III) oxide? The vapor pressure of H2O at 27 degrees Celsius is 26.7 mm Hg.
Problem on interest payable annually : Novastar Corporation issued 2,000 of its 1,000, 10% ten-year bonds dated July 1, Year 1, at a time when the market paid 9% for bonds of similar risk. Interest is payable annually.
Find the nominal interest rate for a debt security : find the nominal interest rate for a debt security given the following information: real rate = 2%, liquidity premiun = 2%, defalult risk premium = 4%, maturity risk premium = 3%, and the inflation premium = 3%
What is the specific heat for the metal : It takes 49.0 J to raise the temperature of a 9.60 g piece of unknown metal from 13.0 degrees celsius to 24.5 degrees celsius. what is the specific heat for the metal?
Individual federal income tax return : Brown earned net operating income of $80,000 and had a long-term capital loss of $3,000. Also, Jay withdrew $40,000 from the corporation. Jay must report $80,000 of Brown Corporation income and may deduct the $3,000 loss on his individual Federal ..
Variable predetermined manufacturing overhead rates : Compute the total, fixed, and variable predetermined manufacturing overhead rates. Compute the total, controllable, and volume overhead variances.
Find margin of error in the poll using percentage points : In a poll of 553 voters in a certain city, 64% said the back a bill which would limit growth and development in their city. The margin of error in the poll was reported as 4 percentage points.

Reviews

Write a Review

Finance Basics Questions & Answers

  Determination of future value

Assume that you wish to save for your child's college education by opening up an educational IRA. You plan to deposit $100 per month into the IRA for the next eighteen years.

  Find the interest amount earn on the investment

Technical College earned $3,445,553 in state aid on September 15 for the fall academic semester. The Vice-president for finance decided to invest $2,000,000 in a two month investment that pays 11.5 percent simple interest.

  Residual dividend model

Axel Telecommunications has a target capital structure that Problems consists of 70 percent debt and 30 percent equity. The company anticipates that its capital budget for the 1­3 upcoming year will be $3,000,000.

  Global finance-optimal financing-investment strategy

Employ foreign exchange and cost of capital data to determine appropriate capital sources. Please describe why and how you came to these conclusions. Also make sure to site sources.

  Computation of expected value and standard deviation

Computation of expected value and standard deviation and What is the expected value of unit sales for the new product

  Use financial calculator to solve for the interest rate

Use financial calculator to solve for the interest rate involved in the following future value of an annuity due problem. The future value is $57,000, the annual payment is $7,500, and the time period is six years.

  Thoughts regarding corporate compensation

What are your thoughts regarding corporate compensation and the potential need for new regulations given the current state of the economy, corporate bankruptcies and bailout of institutions?

  Computation of payback period and npv

Computation of payback period and NPV If your esquire a payback period of two years, will you make the movie

  Computation the amount interest earned during the sixth year

Future value of today investment at a perticular interest over a period of years? Computation the amount interest earned during the sixth year

  Working capital management comprises computation of cash

Working capital management comprises computation of cash conversion and what is Primrose's cash conversion cycle

  Business ethics-moral and legal rights in workplace

Explain and defend your decision. Put yourself in the position of the employer in this case and defend your actions.

  Determine the present worth of the cash flows

The Engineering Economics Finance Corporation consider to receive $900,000 next year from a certain investment, with increases of 5 percent per year.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd