... future value of bond/discount factor of ... Present value increases (decreases) if interest rate decrease (increases ... 6. The risk-free rate of return is 8 percent ...
... 0.075 =75/1000 Coupon rate = (Annual Coupon / Face value)= or 7.50%. Answer: Coupon rate= 7.50% xpect 5% rate of mium is 5%. Mercury. e risk-free rate is. ...
...Discount Rates. You believe that a stock with the same market risk as the S&P 500 will sell at year. Assume that the risk premium is 7.6% and the risk free rate...
... is the present value of its future cash flows discounted at the rate appropriate to ... the portfolio under the base scenario of 2% risk-free rate, 10% market ...
... to tell without knowing the coupon rates of the ... 10. Inflation rate You are given the following data ... r* = real risk-free rate = 4% Constant inflation premium = 7 ...
...rate of return = risk-free rate + (market risk premium × beta ...rate of return = 4% + 8.4% Required rate of return ... value, you will then have to discount it using ...
Risk-adjusted discount rates. ... in one of the three mutually exclusive projects E, F, G. The firms cost of capital, r, is 15% and the risk-free rate, Rf, is 10%. ...
...risk free rate= rf = 5% beta of stock= beta A= 1.5 return on market portfolio= rm ... No of Periods =n= 19 Discount rate per period = r = 6.00% PVIF (19 periods, 6 ...
... a $1,000 par value, and the coupon interest rate is 10%. The bonds sell at a price of $850. What is their yield to maturity? (5-6) The real risk-free rate is 3 ...
