Lender expect the inflation rate to be in the loans second

Reference no: EM1314824

Q. Marshall Manufacturing has immediately borrowed money at 13.5percent (%) for 2 yrs. The pure rate of interest is 2percent (%). Marshall's default risk premium is 4percent (%), its liquidity risk premium is 2percent (%) also its maturity risk premium is .5percent (%). Inflation is expected to be 3percent (%) during the first yr of the loan's life. Illustrate what does the lender expect the inflation rate to be in the loan's second yr?

Reference no: EM1314824

Questions Cloud

Find the magnitude of the acceleration of the boy : A 70.0 kg circus performer slides 4.90m down a pole to the circus floor, starting from rest. What is the kinetic energy of the performer as she reaches the floor if the frictional force on her from the pole (a) is negligible (she will be hurt) and (b..

Computation of cash conversion cycle : Computation of cash conversion cycle from income statement and balance sheet and Evaluate Hopewell's cash conversion and Give an interpretation of the value computed in (a).

Discussing short run cost curves and output : The agricultural market for corn usually can be characterized as a purely competitive industry. How might the following events affect the shot-run cost curves and output for a firm in the industry?

Solving the problem on proportion : Solving the problem on proportion.

Lender expect the inflation rate to be in the loans second : Illustrate what does the lender expect the inflation rate to be in the loan's second yr?

Evaluate the length of the inventory conversion : Evaluate the length of the inventory conversion period and Determine the length of the receivables conversion period.

Find out the work done by the force of gravity : A dare devil is shot out of a cannon at 45.0 degrees to the horizontal with an initial speed of 25.0 m/s. A net is positioned a horizontal distance of 50.0 m from the cannon.

The important steps in the process : Elucidate the process you will utilize to accomplish this task, including the information you will want also the important steps in the process.

Stratified random sampling technique : If a group is chosen from a population on the basis of sharing the same percentages of trait features as known to exist in the population, then the group so chosen would constitute:

User Account

All Pages