User Account

All Pages

What is the drp on a 20 year loan to yubaba inc

Assignment Help Finance Basics
Reference no: EM132035706

You are given the following information:

  • r* = 1.5%
  • Investors expect inflation to average 3% per year into the foreseeable future
  • The MRP on 200 year bonds = 2%
  • The LP on U.S. and Yubaba Inc. bonds = 0
  • The interest rate on a 20 year loan to Yubaba Inc. is 1.25 times the rate on a 20 year loan to the U.S. government.

What is the DRP on a 20 year loan to Yubaba Inc.

Reference no: EM132035706

Questions Cloud

Compute the realized rate of return for an investor : Compute the realized rate of return for an investor who purchased the bonds when they were issued and held them until they were called.
What is the yield to maturity : What is the yield to maturity? What is the yield to call?
Explain health insurance portability and accountability act : Instructions: Research the following laws that relate to computer crime. Write a 8 page paper discussing the role they play in computer crime.
Best estimate of these bonds remaining life : What is the best estimate of these bonds' remaining life?
What is the drp on a 20 year loan to yubaba inc : The interest rate on a 20 year loan to Yubaba Inc. is 1.25 times the rate on a 20 year loan to the U.S. government.
Forward price and the value of forward contract : What are the forward price and the value of the forward contract?
Why proper forensics protocols must be followed : Using at least 500 words - summarize the article. (The author discusses six reasons why proper forensics protocols must be followed when collecting computer).
When we compare your portfolio beta : Let's assume that your portfolio has a beta of 1.23. When we compare your portfolio's beta with the market beta, which is 1.00.
What is the issuance price of the bond : A 10-year zero-coupon bond that yields 6% is issued with a $1,000 par value. What is the issuance price of the bond

Reviews

Write a Review

Finance Basics Questions & Answers

  What is its present value and its future value

An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4, $300 at the end of Year 5, and $500 at the end of Year 6. If other investments of equal risk earn 8% annually, what is its present value? its future value?

  The balance sheet

Derivatives are financial instruments whose value is based upon other financial instruments, stock indexes or interest rates, or interest rate indexes.

  How would this change your investment strategy

How would this change your investment strategy?

  Current rate be on two-year treasury securities

If the unbiased expectations theory is correct, what should the current rate be on two-year Treasury securities?

  What is the length of the annuity time period

The annuity pays $17,500 a year at an annual interest rate of 7.5 percent. What is the length of the annuity time period?

  Training program explaining net present value

You have been asked by a manager in your organization to put together a training program explaining Net Present Value (NPV) and Future Value (FV) and how they are used to evaluate the price of stock.

  Economic exposure,transaction exposure ,translation exposure

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

  How does size of initial investment affect the indicated irr

How does the size of the initial investment affect the indicated internal rate of return (IRR) and net present value (NPV) of a proposed investment?

  Why is working capital management important to a company

Why is working capital management important to a company? Are there particular industries where managing working capital is more important?

  Forecasting and demand management

Define the following terms: Time value of money, Efficient market and Forecasting and demand management

  What return did you realize on your investment

You owned a building for one year. You bought it at $400,000 and sold it for $380,000. You earned $24,000 in rent that year.

  Planning on raising fresh equity capital

A publicly traded corporation is planning on raising fresh equity capital by selling a large new issue of common stocks. They are interested in minimizing the selling cost and are undecided between an underwritten cash offer and a right offer. Whi..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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