Discuss which interest rates should be used for an asset

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  • Discuss which interest rates should be used for an asset which is 1 year in length, 5 years in length, 15 years in length and 30 years in length.
  • Disucss how the interest rate will be impacted if the bond is a government bond or a corporate bond.
  • What typically happens to the interest rate as the amount of time increases i.e. the maturity increases? Explain your answer.
  • Why are the interest rates different for different credit ratings? Explain your answer.

Reference no: EM13396494

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