Nikki gs corporations 10-year bonds are currently yielding

Assignment Help Finance Basics
Reference no: EM13620546

Nikki G's Corporation's 10-year bonds are currently yielding a return of 6.85 percent. The expected inflation premium is 1.25 percent annually and the real interest rate is expected to be 2.20 percent annually over the next ten years. The liquidity risk premium on Nikki G's bonds is 0.35 percent. The maturity risk premium is 0.20 percent on 4-year securities and increases by 0.08 percent for each additional year to maturity. Calculate the default risk premium on Nikki G's 10-year bonds.

Reference no: EM13620546

Questions Cloud

A taut string has a length of 260m and is fixed at both : a taut string has a length of 2.60m and is fixed at both ends. a find the wavelength of the fundamental mode of
In linear regression the dependent variable must be : in linear regression the dependent variable must be
Suppose that 50 identical batteries are bing tested after 8 : suppose that 50 identical batteries are bing tested. after 8 hours of continuous use assume that a given batter is
Atanding wave is described by the wave function y : a standing wave is described by the wave function y 6sinpi2xcos100pit where x and y are in meters and t is in
Nikki gs corporations 10-year bonds are currently yielding : nikki gs corporations 10-year bonds are currently yielding a return of 6.85 percent. the expected inflation premium is
According to the census bureau 321 people reside in the : according to the census bureau 3.21 people reside in the typical american household. a sample of 25 households in
Calculate the maximum mass flow rate at the inlet condition : a refrigerant 134a at 140 kpa and -10 degree celcius is compressed by an adiabatic 16kw compressor to an exit state of
Find the 95 confidence interval for the mean age at which : a psychologist claims that the mean age at which children start talking is 12.8 months. carlos wanted to check if this
Calculate the speed of the electrons in the water the speed : when high-energy charged particles move through a transparent medium with a speed greater than the speed of light in

Reviews

Write a Review

Finance Basics Questions & Answers

  Marcie owns a 10 percent interest in a shopping mall

marcie owns a 10 percent interest in a shopping mall located in portland maine. her adjusted basis for her interest is

  Which is more likely to have a high debt-to-equity ratio an

which is more likely to have a high debt-to-equity ratio anelectric utility or a high tech company and

  Computing the firms share price with the help of price

Computing the firms share price with the help of price earnings ratio and Perez Electronics Corp. has reported that its net income for 2006 is $1,276,351

  Journalize treasury stock transactions

E3-4 On January 1, 2002, the stockholders' equity section of Ted Parge Company shows: common stock $5 par value $1,500,000, paid-in capital in excess of par value $1,000,000,

  One of the cognitive changes older adults worry about and

one of the cognitive changes older adults worry about and fear most is memory loss. some older adults may assume that

  Discuss the advantages and disadvantages of models

Discuss the advantages and disadvantages of models used to assess risk exposure. Which of the disadvantages might be the most problematic?

  What will gartners levered value be in this case

Suppose instead Gartner decides to maintain a 50% debt-to-value ratio going forward. If Gartner’s debt cost of capital is 6.67%, what will Gartner’s levered value be in this case?

  What are the cash flows associated with the project

However, the clinic has to py the organizers of the exposition a fee for the marketing value of the opportunity. this fee, which must be paid at th end of the second year, is $2 million.

  What trade should you make

What trade should you make? How much margin would you have to post to your account ? At what price would you receive a margin call?

  What is the expected market price now for this bond

A bond has a 6.0% coupon rate and pays interest SEMI-annually. It has 8 years to maturity. Market interest rates for such a bond are now at 8.0% yield-to-maturity. What's the expected market price now for this bond? (pick closest answer)

  What are the four main sections of a cash budget

What are the four main sections of a cash budget what information is conveyed to managers?

  Next year the price of a stock is expected to be 2200 and

next year the price of a stock is expected to be 2200 and the stock will pay a 55 dividend. the interest rate is 10.

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