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Q. What is risk adjusted discount rate?
The risk adjusted discount rate includes two rates viz
(i) Risk-free rate: - Risk free rate is the usual rate or the usual discount rate that takes care of time element and
(ii) Risk Premium Rate: - Risk Premium Rate is the excess rate or extra rate that takes care of the risk factor.
Therefore the risk adjusted discount rate is the usual or normal discount rate for the time factor plus the extra or additional discount rate.
Discuss the process of bringing a new international bond issue to market. Answer: A borrower desiring to increase funds by issuing Eurobonds to the investing public will conta
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Based on the period involved in repayment of the debt obligations, the debt instruments could be classified into long-/medium-/short-term debt instruments.
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sk company had the following balance sheets and income statements over the last 3 years
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