Estimate the nominal interest rate for a new issue of a bond. The current 3-month Treasury bill rate is 4,50% and the inflation rate is 1,50%. The 30-year Treasury bond rate is 7,50% and the 30-year...


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Estimate the nominal interest rate for a new issue of a bond.<br>The current 3-month Treasury bill rate is 4,50% and the inflation rate is 1,50%.<br>The 30-year Treasury bond rate is 7,50% and the 30-year corporate bond rate is 9,00%.<br>The liquidity-risk premium willI be greater than zero, however, because the secondary market for the firm's bonds is more uncertain. It is<br>estimated at 100 basis points.<br>Provide your answer up to 2 decimal places<br>Real risk-free interest rate:<br>%<br>Inflation premium:<br>%<br>Default-risk premium:<br>%<br>Maturity-risk premium:<br>%<br>Liquidity-risk premium:<br>%<br>Nominal interest rate:<br>%<br>

Extracted text: Estimate the nominal interest rate for a new issue of a bond. The current 3-month Treasury bill rate is 4,50% and the inflation rate is 1,50%. The 30-year Treasury bond rate is 7,50% and the 30-year corporate bond rate is 9,00%. The liquidity-risk premium willI be greater than zero, however, because the secondary market for the firm's bonds is more uncertain. It is estimated at 100 basis points. Provide your answer up to 2 decimal places Real risk-free interest rate: % Inflation premium: % Default-risk premium: % Maturity-risk premium: % Liquidity-risk premium: % Nominal interest rate: %

Jun 11, 2022
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