The interest rate required by investors on a debt security can be expressed by the following equation:

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The interest rate required by investors on a debt security can be expressed by the following equation: Interest rate = RRF + IP + DRP + LP + PRP + CRP.
Define each term of the equation, and explain how it affects the interest rate.

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Principles of Finance

ISBN: 978-1285429649

6th edition

Authors: Scott Besley, Eugene F. Brigham

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Question Posted: Aug 05, 2013 03:40 AM

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The interest rate required by investors on a debt security can be expressed by the following equation:

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RRF Real riskfree rate Most of the debt securities have risk and th...View the full answer

Principles of Finance

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