This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Niendorf Corporations 5-year bonds yield 7.15%, and 5-year T-bonds yield 5%. The real risk-free rate ... (Read 35 times)

ega16

  • Full Member
  • ***
  • Posts: 145
on: Aug 7, 2023
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%

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
Buy Test-Bank


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
Reply #1 on: Aug 7, 2023
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
Excellent

miss.ashley

  • Member
  • Posts: 371
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Cutaneous mucormycosis is a rare fungal infection that has been fatal in at least 29% of cases, and in as many as 83% of cases, depending on the patient's health prior to infection. It has occurred often after natural disasters such as tornados, and early treatment is essential.

Did you know?

Eating food that has been cooked with poppy seeds may cause you to fail a drug screening test, because the seeds contain enough opiate alkaloids to register as a positive.

Did you know?

Colchicine is a highly poisonous alkaloid originally extracted from a type of saffron plant that is used mainly to treat gout.

Did you know?

More than nineteen million Americans carry the factor V gene that causes blood clots, pulmonary embolism, and heart disease.

Did you know?

There are 60,000 miles of blood vessels in every adult human.

20,000 year old spotted hyena painting from the Chauvet Cave, France 20,000 year old spotted hyena painting from the Chauvet Cave, France
Chinese workers on a railway in the far West. “Without them,” Leland Stanford, president of the Cent Chinese workers on a railway in the far West. “Without them,” Leland Stanford, president of the Cent
Risk Factors for Diabetes Risk Factors for Diabetes
For each function f(x) = 6x^2 - 4, estimate the instantaneous rate of change for the given ... For each function f(x) = 6x^2 - 4, estimate the instantaneous rate of change for the given ...
If a graph has the following x-intercepts, which value of x is the instantaneous rate of change ... If a graph has the following x-intercepts, which value of x is the instantaneous rate of change ...
Chemical bonds join atoms into molecules Chemical bonds join atoms into molecules
Video: Carpal Tunnel Syndrome

For a complete list of videos, visit our video library