This topic contains a solution. Click here to go to the answer

Author Question: Niendorf Corporations 5-year bonds yield 7.15%, and 5-year T-bonds yield 5%. The real risk-free rate ... (Read 84 times)

ega16

  • Full Member
  • ***
  • Posts: 145
Niendorf Corporation’s 5-year bonds yield 7.15%, and 5-year T-bonds yield 5%. The real risk-free rate is r* = 2.85%, the inflation premium for 5-year bonds is IP = 1.75%, the default risk premium for Niendorf’s bonds is DRP = 1.3% versus zero for T-bonds, and the maturity risk premium for all bonds is found with the formula MRP = (t – 1)×0.1%, where t = number of years to maturity. What is the liquidity premium (LP) on Niendorf’s bonds?

0.85%


0.95%


1.00%


1.20%



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by ega16 on Aug 7, 2023

my33251

  • Full Member
  • ***
  • Posts: 158
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 60% of students answer this correctly




ega16

  • Member
  • Posts: 145
Reply 2 on: Aug 7, 2023
Great answer, keep it coming :)


tandmlomax84

  • Member
  • Posts: 323
Reply 3 on: Yesterday
Wow, this really help

 

Did you know?

Illicit drug use costs the United States approximately $181 billion every year.

Did you know?

Increased intake of vitamin D has been shown to reduce fractures up to 25% in older people.

Did you know?

The B-complex vitamins and vitamin C are not stored in the body and must be replaced each day.

Did you know?

All adverse reactions are commonly charted in red ink in the patient's record and usually are noted on the front of the chart. Failure to follow correct documentation procedures may result in malpractice lawsuits.

Did you know?

Your chance of developing a kidney stone is 1 in 10. In recent years, approximately 3.7 million people in the United States were diagnosed with a kidney disease.

For a complete list of videos, visit our video library