What is the risk free rate

Assignment Help Accounting Basics
Reference no: EM133178382

Question - The following data are gathered:

The real risk-free rate is 1.05%

Inflation premium is constant at 2.60%

Default risk premium is 3.50%

Maturity risk premium is 2.30%

Liquidity risk premium is 1.50%

Required - What is the risk free rate?

Reference no: EM133178382

Questions Cloud

What are the implications of this result for cash management : Assuming a 1yr, money market account investment at 4.73 percent (APY), What are the implications of this result for cash management
Employees to implement major new strategy : Explaining how I would motivate managers and employees to implement a major new strategy.
What is the default risk premium : The stated rate for the short-term government issued security is 4%. The liquidity premium is 2.75%. What is the default risk premium
External threat to create strategy : Provide an example WT strategy and explain how an internal weakness can be matched with an external threat to create a strategy.
What is the risk free rate : The following data are gathered: The real risk-free rate is 1.05% and Inflation premium is constant at 2.60%. What is the risk free rate
Effective human resource management strategies : Summarize the article, webinar or blog identifying important information for managers,
What is the conversion costs per equivalent unit : Direct materials are added at the beginning of the production process. What is the conversion costs per equivalent unit for the month of September 2021
Create code of ethics for you and your family : Provides you with an opportunity to create a code of ethics for you and your family, as well as to explain the strategies and thought processes
Why is the above case on golf balls related to the UCC : Describe what the UCC is and in your view what it is intended to accomplish and Do you feel the UCC is/is not important to business owners and/or customers

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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