User Account

All Pages

What is the real risk free rate

Assignment Help Finance Basics
Reference no: EM131126286

5-year Treasury bonds yield 6.4%. The inflation premium (IP) is 1.9%, and the maturity risk premium (MRP) on 5-year T-bonds is 0.4%. There is no liquidity premium on these bonds. What is the real risk-free rate, r*?

a. 3.90%

b. 3.77%

c. 5.04%

d. 5.13%

e. 4.10%

Reference no: EM131126286

Questions Cloud

What is the probability of drawing a queen : What is the probability of drawing a Queen, a three, and then either a Queen or a three in that specific order? Assume there are no replacements.
Which product will most likely be exclusively distributed : A company's total marketing communications mix consists of a special blend of advertising, sales promotion, public relations, personal selling and direct-marketing tools that the company uses to communicate customer value and build customer relati..
The plans of management are often expressed formally : 2. The plans of management are often expressed formally in: A) financial statements. B) performance reports.
Prepare an income statement for the month ended may 31 : Relax Services was organized on May 1, 2010. A summary of the revenue and expense transactions for May follows:
What is the real risk free rate : 5-year Treasury bonds yield 6.4%. The inflation premium (IP) is 1.9%, and the maturity risk premium (MRP) on 5-year T-bonds is 0.4%. There is no liquidity premium on these bonds. What is the real risk-free rate, r*?
What is the theory of ethical relativism : What is the theory of ethical relativism?
State an expression representing the weight of the tea : A shopkeeper has x kilograms of tea in stock. He sells 15 kilograms and then receives a new shipment weighing2y kilograms. State an expression representing the weight of the tea he now has?
Discuss impact change resistance can have on implementation : After analyzing the company, you suggest some change initiatives to be implemented in the organization. Several of the senior employees are not happy about the change and have provided several valid reasons to back their claim that the change will..
How many dollars does it cost to buy 3 books on sale : At a local bookstore, books that normally cost b dollars are on sale for10 dollars off the normal price. How many dollars does it cost to buy 3 books on sale?

Reviews

Write a Review

Finance Basics Questions & Answers

  To successfully implement change leaders pay careful

to successfully implement change leaders pay careful attention to each stage in the eight-stage model for change.

  Inventory requirements of the electric fans component parts

Describe how lean production principles may be used to maximize the efficiency and effectiveness of the electric fan supply chain process

  Review the financial statements analyse the current

review the financial statements analyse the current financial state of anthonys orchard and evaluate the impact of a

  Accepting a certain level of risk

Corporations are constantly making business decisions based on accepting a certain level of risk. Discuss and explain a situation where a company has accepted a certain degree of risk.

  Key differences common stock and bonds

Key differences between common stock and bonds include all of the following, All of the following features may be characteristic of preferred stock.

  Calculate the future value if the investment

Find the future value one year from now of a $7,000 investment at a 3 percent annual compound interest rate. Also calculate the future value if the investment is made for two years.

  Providing motives for mergers

1. Several factors have been proposed as providing motives for mergers, including (1) synergy, (2) availability of excess cash, (3) ability to purchase assets at less than replacement cost, (4) diversification, and (5) managers personal incentives..

  Internet regarding the differences in culture

Conduct research using the online library, your text book and the Internet regarding the differences in culture, management styles, and communication strategies between the U.S. and Cambodia.

  Calculate break-even point in units

Rosario corporation, which is located in Buenos Aires, Argentina, and manufactures a component used in farm machinery. The company's fixed costs are 4,000,000 each year.

  Difference between a privately and a publicly held company

difference between a privately and a publicly held company

  The expected return on equity

The expected return on equity

  Clculate the loan balance at the end of years 1 2 3 and 4

you are considering the purchase of an apartment complex. the following assumptions are made the purchase price is

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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