Nikki gs corporations 10-year bonds are currently yielding

Assignment Help Finance Basics
Reference no: EM13619500

Nikki G's Corporation's 10-year bonds are currently yielding a return of 7.00 percent. The expected inflation premium is 1.20 percent annually and the real interest rate is expected to be 2.40 percent annually over the next ten years. The liquidity risk premium on Nikki G's bonds is 0.20 percent. The maturity risk premium is 0.35 percent on 4-year securities and increases by 0.06 percent for each additional year to maturity. Calculate the default risk premium on Nikki G's 10-year bonds.

Reference no: EM13619500

Questions Cloud

What would be the hospitals new receivables balance if a : fargo memorial hospital has annual net patient service revenues of 14400000. it has two major third-party payers plus
The earth puts a gravitational force on the moon the moon : the earth puts a gravitational force on the moon. the moon puts a gravitational force on the earth. how do the
Suppose we want to test thenbsph0 that left-handed women : 2391 women are asked which hand they preferred to use and which foot they preferred to use with results as right hand
A common misconception is that the uncertainty principle is : a common misconception is that the uncertainty principle is a unique feature of quantum mechanics with no analogy in
Nikki gs corporations 10-year bonds are currently yielding : nikki gs corporations 10-year bonds are currently yielding a return of 7.00 percent. the expected inflation premium is
A long nonconducting cylinder radius 60 mm has a : a long nonconducting cylinder radius 6.0 mm has a nonuniform volume charge density given by ar2 where a 6.2 mcm5 and
Determine the mean and the variance of w find d1d2d3 and d4 : let w be x212a determine the mean and the variance of wb find d1d2d3 and d4 so that pw gt d1 0.05 p w gt d2 0.99 pw
Steam at 1 bar enters an adiabatic heat exchanger with a : steam at 1 bar enters an adiabatic heat exchanger with a quality of 0.901 and exits as a saturated liquid. the steam is
A 2-year treasury security currently earns 187 percent over : a 2-year treasury security currently earns 1.87 percent. over the next two years the real interest rate is expected to

Reviews

Write a Review

Finance Basics Questions & Answers

  By how much must the assets be reduced to bring the tato

By how much must the assets be reduced to bring the TATO to the industry average, holding sales constant?

  Find the present value of the cash flows shown using a

find the present value of the cash flows shown using a discount rate of 9

  Computation of after-tax cost of debt

Computation of after-tax cost of debt is planning to place privately with a large insurance company

  Economic exposure,transaction exposure ,translation exposure

These are possible exposure: 1.Economic exposure 2.Transaction exposure 3. Translation exposure

  Explain porter five forces model

Explain Porter's five forces model. What are the four competitive strategies firms can choose from according to Porter's model?

  Find the present value at time 0 of payments

Find the present value at time 0 of payments of $4800 a year paid at the end of each month for 7 years. If the nominal interest rate is 9% convertible every 4 months.

  What percentage return do you earn on the investment

Explain what percentage return do you earn on the investment - During the year the company distributes $ 0.75 in dividends

  You purchase machinery for 23958 that generates cash flow

you purchase machinery for 23958 that generates cash flow of 6000 for five years. what is the internal rate of return

  The prior year retained earnings were 2123 million what

computer world inc. paid out 22.5 million in total common dividends and reported 278.9 million of retained earnings at

  How much will you have to invest year between now and then

It appears the annual payment required to reach your target is more than you can afford. If the most you can afford to invest each year is $1,200 what average annual rate of return must you earn in order to reach your target?

  Use algebraic and graphical approaches

Mop and Broom Manufacturing is estimating whether to produce a new type of mop. The corporation is planning the operations requirements for the mop as well as the market potential.

  Calculate the covariance between stock c and stock d

If the correlation coefficient between stock C and stock D is +1.0% and the standard deviation of return for stock C is 15% and that for stock D is 30%, calculate the covariance between stock C and stock D.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd