Calculate the equity premium given: . Stock market return: 12.5% Corporate bond return: 8.2% ⚫ T-bill rate: 4.1% ⚫ Inflation: 2.8%
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Calculate the equity premium
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- Assume that the risk-free rate (i.e., Rf) is 2.8%. If, for a particular company bond issue, the default risk premium (i.e., DP) is 3.1%, the maturity risk premium ( i.e., MP) is 0.9%, and the market risk premium ( i.e., MRP) for that company's stock is 12.9% what is the required rate of return for the company's fixed income securities ? Record your answer as a percent , rounded to one decimal place , but do not include a percent sign in your answer . For example , enter 0.1578658 = 15.78625% as 15.8 .Financial accountingProvide correct answer general accounting question