Question: Hello, I just need the steps to answer this question or any video that can solve or let me how to get the answer: You
Hello, I just need the steps to answer this question or any video that can solve or let me how to get the answer:
You have to choose a currency to do your analysis in and estimate a risk-free rate in that currency. If there is a Aaa rated entity issuing long term bonds in currency, you can use the interest rate on those bonds as your risk-free rate. If not, you have to subtract out the default spread for the entity from the interest rate on the entitys bonds to get to a risk-free rate.
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