+1-415-670-9189
info@expertsmind.com
Calculate the liquidity risk premium
Course:- Finance Basics
Reference No.:- EM13263749





Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Finance Basics

Tom and Sue's Flowers, Inc.'s, 15-year bonds are currently yielding a return of 9.20 percent. The expected inflation premium is 3.20 percent annually and the real interest rate is expected to be 3.90 percent annually over the next 15 years. The default risk premium on Tom and Sue's Flowers' bonds is 0.70 percent. The maturity risk premium is 0.65 percent on 5-year securities and increases by 0.05 percent for each additional year to maturity. Calculate the liquidity risk premium on Tom and Sue's Flowers, lnc.'s, 15-year bonds.




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Finance Basics) Materials
Calculate the amount of money the couple will need the first year Jazz starts college. Calculate the capital needs of the couple at retirement and the current value of their r
HON is the Honeywell International.  The tutor must include all the tabels that he used to do the calculations. Just include them at the end of the paper and he should prefer
Illustrate out the term underlying as it relates to derivative financial instruments? Write down the main distinctions between a traditional financial instrument and a derivat
Describe in detail the budgets that you work with. Based on the effectiveness of the budget, what recommendations would you suggest to improve the communication and/or utiliz
Risk analysis involving computation of cash flow and coefficient of variation and Wrigley Village Yearly After-tax Cash Inflow Crosley Square Yearly After-tax Cash Inflow
Define the three conditions that make up a perfect capital market, and then compare and contrast the effects of perfect capital markets and imperfect capital markets on valu
Your choices are Stock X with an expected return of 11 percent and Stock Y with an expected return of 8.0 percent. If your goal is to create a portfolio with an expected ret
Based on recent market information, Dunn IT is worth $560 million as an independent operation. If the merger makes economic sense for Who, what is the minimum estimated valu