Remember from class that YTM - Riskfree = sum of risk premiums. Assume the risk-free rate is 1.316 the credit risk premium is 1.401, and the maturity risk premium is 1.817 what is the YTM of the bond? (also this is an estimate)
Remember from class that YTM - Riskfree = sum of risk premiums. Assume the risk-free rate is 1.316 the credit risk premium is 1.401, and the maturity risk premium is 1.817 what is the YTM of the bond? (also this is an estimate)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Risk free rate = 1.316
Credit risk premium = 1.401
Maturity risk premium = 1.817
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