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Q. What is risk adjusted discount rate?
The risk adjusted discount rate includes two rates viz
(i) Risk-free rate: - Risk free rate is the usual rate or the usual discount rate that takes care of time element and
(ii) Risk Premium Rate: - Risk Premium Rate is the excess rate or extra rate that takes care of the risk factor.
Therefore the risk adjusted discount rate is the usual or normal discount rate for the time factor plus the extra or additional discount rate.
Q. Yield curve - influence the rate of interest? The normal yield curve demonstrates that the yield required on debt increases in line with the term to maturity. One reason for
what are the features of branch accounting
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