Which is generally considered the more appropriate estimate of the risk-free rate: the yield on a short-term

Question:

Which is generally considered the more appropriate estimate of the risk-free rate: the yield on a short-term T-bill or the yield on a 10-year T-bond?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Intermediate Financial Management

ISBN: 9781337395083

13th Edition

Authors: Eugene F. Brigham, Phillip R. Daves

See More Books

Question Posted: Mar 10, 2024 12:02 AM

See More Questions

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
11. You plan to analyze the value of a potential investment by calculating the sum of the present values of its expected cash flows. Which of the following would increase the calculated value of the...
The operations of Balloons Ltd. generated the following data for its current December 31 taxation year: Business losses (150,000) Dividends received and deducted (Division C) 25,000 Bond interest...
In a common test for cardiac function (the "stress test"), the patient walks on an inclined treadmill (Fig. 6-46). Estimate the power required from a 75-kg patient when the treadmill is sloping at an...
The open-loop transfer function of a control system that includes a negative unity feedback is as follows: Determine the proportional controller gain $\left(k_{P}ight)$ for a...
Discuss the sampling strategy and technique to be used. Develop a hypothetical research scenario that would necessitate the use of the Action Research Approach and a Posttest With a Historical...
Gordon Beckham started his own delivery service, Beckham Deliveries, on June 1, 2012. The following transactions occurred during the month of June. June 1 Gordon invested $10,000 cash in the...
The figure depicts Jack - in - the - box: "Jack" is attached inside a box by a spring, as shown. You estimate Jack's mass to be 0 . 4 k g . As so often happens, a sign tells you the spring constant:...
A companys beta is 1.4, the yield on a 10-year T-bond is 4%, and the market risk premium is 4.5%. What is r s ?
Explain why there is a cost to using reinvested earnings; that is, why arent reinvested earnings a free source of capital?
In Problems 920, find the slope of the tangent line to the graph of f at the given point. Graph f and the tangent line. f (x) = 2x 2 + x at (1, 3)
Explain why the auditor needs to know how to conduct a risk assessment. Why does the auditor need to know how to conduct a risk assessment?
Company A wishes to import microwaves it manufactures into the US. The transaction value of each microwave is $100. The payable duty is a compound tariff rate. The specific rate is $2.00. The ad...
What is the journal entry if you have a $100 bill where you take a 2% discount? What are the advantages of regularly reconciling bank statements?
What is the impact on the Income Statement related to the transaction described in the second row, "Revenue deferred"? Specifically, will this transaction increase, decrease or have no impact on Net...
Can you identify what type of cost is best represented by Property taxes on land and building, and briefly explain why
Worldwide, over a billion solder balls must be manufactured daily for assembling electronics packages. The uniform droplet spray method uses a piezoelectric device to vibrate a shaft in a pot of...
The figure shows six containers, each of which is filled from the top. Assume that water is poured into the containers at a constant rate and each container is filled in 10 seconds. Assume also that...
Vincent pays $20,000 for equipment to use in his trade or business. He pays sales tax of $800 as a result of the purchase. Must the $800 sales tax be capitalized as part of the purchase price?
Sergio owns 200 shares of Palm Corporation common stock, purchased during the prior year: 100 shares on July 5, for $9,000; and 100 shares on October 15, for $12,000. When Sergio sells 50 shares for...
On October 21 of the current year, David receives stock of Western Corporation as a gift from his grandfather, who acquired the stock on January 20, 1995. Under what conditions would Davids holding...
Mark and Mash Lest fell in love. In order to continue their dream of taking over the wizarding world, they decided to have children. Mash, who can do dark magic, cannot speak parseltongue. However,...
What role does ERP play in managing vendor performance and supplier scorecards in the supply chain?
How can ERP systems help in optimizing supply chain network design and distribution strategies?

Which is generally considered the more appropriate estimate of the risk-free rate: the yield on a short-term

Question:

Step by Step Answer:

The appropriate estimate of the riskfree rate depends on the specific context and time horizon of th...View the full answer

Intermediate Financial Management

Students also viewed these Business questions